Bill Text: DE HB405 | 2011-2012 | 146th General Assembly | Draft
Bill Title: An Act To Amend Title 30 Relating To The Personal Income Tax And Age 55+ Housing.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-06-27 - Introduced and Assigned to Revenue & Finance Committee in House [HB405 Detail]
Download: Delaware-2011-HB405-Draft.html
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SPONSOR: |
Rep. Mulrooney & Sen. Marshall |
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HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY |
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HOUSE BILL NO. 405 |
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AN ACT TO AMEND TITLE 30 RELATING TO THE PERSONAL INCOME TAX AND AGE 55+ HOUSING. |
Section 1.Amend Title 30, Chapter 11of the Delaware Code by adding new section 1194 thereto as indicated by underlining as follows:
§1194.Tax Exemptions For Those Purchasing Age 55+ Housing Who Volunteer Community Services.
(a)Any individual who, either individually or together with another individual, purchases an Age 55+ Home between January 1, 2013 and December 31, 2015 and who provides Voluntary Community Service shall be entitled to a personal credit against the individual's (or individual and spouse's) personal income tax otherwise due in the amount of the Age 55+ Tax Credit for each tax year beginning with the tax year in which the home is purchased through the earlier of (i) the tax year ending December 31, 2020, or (ii) the date such home is sold;
(b)"Administering Agency," for purposes of this section, shall mean the State Office of Volunteerism.
(c)"Age 55+ Home," for purposes of this section, shall mean a residential community, condominium or subdivision consistent with the provisions of the Fair Housing Act, 42 U.S.C. §4601 et seq., as amended from time to time, and in accordance with 6 Del. C. §4600 et seq. and 25 Del. C. § 5116(d) and all regulations promulgated under all of the foregoing where tenancy and residency are limited to one or more residents of a least eighty (80%) percent of the residences situated on the lots or units in the condominium, community or subdivision shall be at least fifty-five years of age or older, and no person who has not attained the age of eighteen years shall reside in any residence on a permanent basis; provided, however, that any person(s) under the age of eighteen may reside temporarily in a residence as long as the term of such occupancy does not exceed thirty days within a single calendar year.
(d)"Age 55+ Tax Credit," for purposes of this section, shall mean the lesser of $8,000 or two (2%) percent of the purchase price of the Age 55+ Home purchased by the individual seeking the tax credit.By way of example, a person purchasing a $300,000 Age 55+ Home shall be entitled to an Age 55+ Tax Credit of $6,000.In the event that two persons purchase an Age 55+ Home, only one person shall be entitled to the full credit, provided that such person seeking the credit volunteers the required number of hours for the Voluntary Community Service; hours may not be combined between two persons.In the event the entire tax credit is not used for the year it is earned, any unused portion of the credit may be carried forward a maximum of three years.
(e)"Age 55+ Volunteer Program," for purposes of this section, shall mean the program created by this Section 1194 under which individuals who have purchased Age 55+ Homes may receive personal tax credits in exchange for Voluntary Community Service.
(f)"Voluntary Community Service," for purposes of this section, shall mean 52 hours of volunteer services donated in Delaware and for the benefit of Delaware residents during the course of a calendar year without compensation of any kind, direct or indirect, and without reimbursement of any expenses except bona fide and documented out-of-pocket expenses, to a non-profit organization or organizations which (i) has received a charitable designation under section 501(c)(3) of the Internal Revenue Code, and (ii) which has registered with the Administering Agency to participate in the Age 55+ Volunteer Program.An individual must provide a minimum of 52 hours of such volunteer services, and excess hours may not be carried over to a succeeding year, nor applied back towards previous years.A person may not receive credit for time donated to an organization for which the person is an independent contractor, employee, officer, director, or otherwise receives compensation (other than reimbursement of out-of-pocket expenses) from such organization.Each non-profit organization participating in the program shall maintain appropriate books and records regarding the hours donated by participating individuals and no later than January 31 of each year, a participating non-profit organization shall supply a report to each volunteer participating in the Age 55+ Volunteer Program and each Administering Agency certifying the number of hours donated.Where an individual has purchased his or her Age 55+ Home after January 1 of a calendar year and in the first quarter of the calendar year (i.e., on or before March 31), then for the year in which the home was purchased, the individual shall only be required to donate 39 hours of community service for that year, but shall only be entitled to a personal credit in an amount equal to seventy-five percent of the Age 55+ Tax Credit which would otherwise be available.Similarly, where an individual purchases his or her Age 55+ Home in the second or third quarters (i.e., on or after April 1 but on or before June 30, or July 1 through September 30), then for the year in which the home was purchased, the individual shall only be required to donate 26 or 13 hours of community service for that year, but shall only be entitled to a personal credit in an amount equal to fifty percent or twenty-five percent of the Age 55+ Tax Credit which would otherwise be available as the case may be.Finally, individuals purchasing their Age 55+ Home in the fourth quarter shall not be entitled to an Age 55+ Tax Credit for the year in which they purchase their homes.By way of example, an individual purchasing a $200,000 Age 55+ Home in the second quarter of a calendar year would be entitled to an Age 55+ Tax Credit of $2,000 for that calendar year, and $4,000 per year thereafter, and an individual purchasing a $200,000 Age 55+ Home in the third quarter of a calendar year would be entitled to an Age 55+ Tax Credit of $1,000 for that calendar year, and $4,000 per year thereafter.
SYNOPSIS
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This Act shall be known as the "Delaware Age 55+ Volunteer Program Act."It provides incentives for those buying Age 55+ Homes to donate their time and talent to Delaware charities and non-profit organizations.Provided an individual donates at least 52 hours of service to participating non-profits, the individual shall be entitled to a tax credit in the amount of 2% of the purchase price of their home, up to a maximum of $8,000.For an individual purchasing a $200,000 home, this would equate to a potential tax credit of $2,000.
The program shall be available to all those who purchase homes beginning January 1, 2013 through December 31, 2015.It shall provide the opportunity for the annual tax credit through the tax year 2020.Because the incentive is being placed in the chapter of the code dealing with personal income tax, it only applies to individuals and not to corporations, limited liability companies, or other entities.
The program is designed not only to be an incentive for home sales, but also to take advantage of the skills and experiences of older Delaware residents and to encourage them to donate time to participating non-profits. |
