If you think you might be in the market for a new home in the Tri-State sometime in the next year, you may want to consider building one in Kentucky.
Starting Wednesday, Kentucky is offering prospective residents an enticing new reason to build in the state.
Builder Mike Kegley is looking to sell a home in the Trails of Doe Run subdivision in Erlanger.
His business has struggled over the last year due to the downturn of the economy.
"This has been a tough recession especially on construction. The state unemployment rate is 10.6. The unemployment rate for construction is currently 30 percent so whether you are a small company like us or one of the larger companies you've had to lay off work due to the lack of work," said Mike Kegley with The B.O.L.D. Company.
Now new hope is on the way in the form of House Bill 3.
Kentucky Gov. Steve Beshear stopped in Erlanger for a ceremonial signing of the bill that gives a five thousand tax credit over the next year to qualified Kentuckians buying a new home.
"Whether to become a homeowner is a significant decision as we all know particularly when times are tough like they are right now. This new homebuyer tax credit lets citizens know they can confidently move forward and they have the support to do so," said Beshear.
This program is more aimed at current home owners who want to build and buy a new home in Kentucky. Those who qualify for the federal $8,000 First Time Home Buyers tax credit are not eligible for the additional Kentucky credit.
Buyers must live in the home for two years and submit a credit application within seven days of closing. It's estimated with each new home built, at least 50 jobs are created.
"When folks make that investment, good things happen for a neighborhood, for retail establishments, good things happen for cities and counties all across our state," said Beshear.
There is a twenty five million dollar cap on this tax credit.
The new Kentucky home building credit will last for one year: from July 26, 2009 up until July 26, 2010.
This new tax credit was approved by the Kentucky legislature during its recent special session, where it also approved a state income tax exemption for active duty military personnel and a car trade-in benefit to help buyers of new cars in Kentucky.
