A New Tax Credit for Missouri Home Buyers

Posted by Elizabeth on January 6, 2010

On December 18^th, the Missouri Housing Development Commission approved a first year property tax credit for qualified home buyers up to $1250. Along with the tax credit, a $500 incentive is being offered for purchasing energy-efficient homes or appliances.
This new tax incentive is one of many reasons that Missouri buyers who are considering buying a home should do it now rather than waiting until spring or summer.

This home is available in Montecito, in St. Charles

Who is Eligible?
Given on a first-come, first-serve basis , this tax credit is available to buyers who meet the MHDC’s income limit guidelines. Visit Missouri Housing Development Commission for household income limits by county.
Luxury homes are available within the income guidelines. Lake St. Louis and St. Charles are home to three affordable luxury communities; Charlestowne, Saratoga, and Montecito.
Houses must be under contract after January 1, 2010.
(The tax credit and energy incentive program has a limited amount of money and will eventually run out.)

Where is the Funding Coming From?
Contrary to popular belief, the funding comes from a reserve fund held by MHDC earned through successful management of mortgage loans made to low and medium-income individuals and families, not from general revenue.

What Energy Efficient Upgrades are Covered Under the Incentive?

• Installing high-performance windows

• House wraps

• Programmable thermostat controls

• Water-efficient toilets and faucets

• Energy-efficient water heaters

• Lighting and appliances

• Sealing heating and air conditioning ductwork

• Caulking

• Insulating water heater pipe

• Increasing the R-value of insulation in crawl spaces and attics

• Conducting on-site energy efficiency inspections and tests
  *Blower door test (tests the overall energy efficiency of the house)
  *Duct blaster test (tests how much the air ductwork leaks)

These improvements must be made prior to closing or within 60 days.

How Do I Apply?
The tax credit application will be part of the documents executed at closing. In order to apply for the energy efficiency incentive, you must have all receipts and documentation for proof of energy-efficient improvements.

Why Buy Now?
Interest rates are at historically low levels, but at some point they start rising again. Currently, the housing market offers prices on homes that are much lower than they were just a few years ago. Due to the fact that [if funds are still available] houses must be in contract by the end of April 2010 for the federal tax credits, more sellers will be coming on the market in the winter rather than spring. Buyers in the market right now will have more homes to choose from.