Iowa offers tax credit program to some home buyers
January 7th, 2013 by Ric Hanson
DES MOINES, Iowa (AP) – Some Iowa home buyers may be eligible for a program that will reduce their federal tax burden. Gov. Terry Branstad announced Monday the state is offering a mortgage credit certificate program that will reduce federal income taxes for qualifying home buyers. The relief could be as much as $2,000 a year for the duration of the mortgage.
The program is available to first time homebuyers, those buying in certain targeted areas and some military veterans. It is funded through federal bonds and the state expects to provide relief to about 1,000 home buyers. A spokeswoman for the Iowa Finance Authority, which is administering the program, says this tax program has not been offered to Iowans since the mid-1990s.