A new bill could help first-time homebuyers buy a home by getting their boss to help pay for it.
If you are a full-time employee looking to buy your first home in Florida, look out for a new bill, HB311.
How does it work?
As the bill is written now, a boss would be able to give their employee anywhere from $1,000 to $5,000 to be used toward their down payment or closing costs. The employer would then get a 100% tax credit break.
A tax credit is a dollar-for-dollar reduction of the income tax you owe to the government. For example, if you owe $1,000 in taxes and have a $1,000 tax credit, your taxes become zero.
Which is what would happen here.
What’s the catch?
The catch is that the employer can’t get more than $500,000 tax credits in a year, and across the state, the program is capped at $5 million.
Another catch is that the program is limited to companies that pay Florida’s corporate income taxes or insurance premium taxes. That typically means nonprofits, some small businesses and government employers would not be able to apply.
If the bill passes, the “Homebuyer Workforce Tax Credit” would be available for three years and have applications open in October.
The House version of the bill is awaiting its second reading. The Senate version of the bill is now in finance and tax.