BUDGET 20120 - TAX SAVINGS FOR B.C. FAMILIES

B.C. First-Time New Home Buyers’ Bonus

The new B.C. First-Time New Home Buyers’ Bonus will be a temporary, one-time refundable income tax credit for first-time home buyers who purchase a newly constructed home. The credit will be calculated as five per cent of the purchase price of the home, up to a maximum credit of $10,000.

Please note that this bonus nothing to do with a home buyer's income tax return itself. The home buyer, assuming he or she meets the criteria, applies for the bonus. If they are eligible, the government approves the application and sends a cheque to the applicant for the amount claimed.

The credit will be phased out at a rate of 20 per cent of net income in excess of $150,000 for single individuals and at a rate of 10 per cent of family net income in excess of $150,000 for couples. Only one credit can be claimed per home.

The credit will be available on purchases of newly constructed housing where both the HST applies and where a written agreement of purchase and sale is entered-into on or after February 21, 2012.

For the Finance Minister’s speech and more details on Budget 2012, visit www.bcbudget.ca.

Visit the Province’s website at www.gov.bc.ca for online information and services.