The EAHP tax credits have been eliminated by the Budget Support Act, 2014.
The below tax credits have been discontinued:
1) A sliding-scale property tax credit as follows:
a) An 80% property tax credit for the first year
b) A 60% property tax credit for the second year
c) A 40% property tax credit for the third year
d) A 20% property tax credit for the fourth year
e) A 20% property tax credit for the fifth year
2) The $2,000 income tax credit in the tax year that the participant purchases the housing unit and each of the four (4) immediately succeeding tax years.
Section 7013 of the Budget Support Act Law of 2014 eliminates the above tax credits offered to EAHP borrowers beginning in tax year 2015 by amending the DC Law 13-96, DC Official code § 42-2506 by inserting a new subsection (c) to read as follows:
“(c) This section shall apply for taxable years beginning after October 1, 2006, through the taxable year ending December 31, 2014”
According to the Office of General Counsel, this amendment would impact the tax credits offered to EAHP borrowers, but NOT the assistance provided by DHCD to the participants namely, the Down Payment Matching Funds and/or the Deferred Payment Loan. It is important to note this amendment completely ends the tax credits at the end of the 2014 taxable year.
This income tax credit was eliminated on December 31, 2014. This means if a person received an EAHP loan anytime in 2014 or any years prior, they are eligible to use the credits against the 2014 tax liability, but not for any tax liability in 2015 or beyond.