First-Time New Home Buyers’ Bonus
On February 21, BC Minister of Finance Kevin Falcon announced this temporary program as part of Budget 2012. While there are eligibility requirements for buyers and the homes they purchase, essentially this program provides a bonus of up to $10,000 to first-time homebuyers of newly-constructed homes.
The program will take effect following legislative changes. Although the legislation hasn’t yet been introduced, it is expected this spring. Once in place, the First-Time New Home Buyers’ Bonus will be in effect until March 31, 2013.
Key elements:
- To be eligible, the agreement of purchase and sale must have been entered into on or after February 21, 2012 and HST must be payable on the home.
- This is a one-time refundable personal income tax credit worth up to $10,000 for first-time new home buyers.
- If an applicant’s income is over $150,000 there will be a reduction of the $10,000 bonus.
- The bonus will be issued as a separate cheque from the BC Ministry of Finance; that is, the bonus will NOT be claimed through your income tax.
- Application forms (available later this year) will need to be completed and sent to the BC Ministry of Finance for processing.
For more information and an FAQ, please see the Ministry of Finance website: www.sbr.gov.bc.ca/individuals/Income_Taxes/Personal_Income_Tax/tax_credits/fthb_bonus.htm.
