As the federal tax credit program for first-time homebuyers is ending, some Louisville homebuyers are taking advantage of Kentucky’s lesser-known $5000 tax credit for buying a new house. Kentucky’s tax credit went into effect last July 26 and although it cannot be combined with the federal tax credit, Louisville real estate professionals say it is having a positive impact on home sales. The state’s tax credit can only be applied to the purchase of a new house not previously occupied. Valeria Cummings, spokesperson for the State Department of Revenue, said that the tax credit program approved 70 Jefferson County homebuyers since the program launched. Across Kentucky at least 414 buyers received approval, which means that more than $2 million in tax rebates have been passed on to homebuyers thus far. The state tax credit program is set to expire on July 26, 2010, once Kentucky has approved $25 million in rebates—whichever comes first. “It was hoped by offering the credit, more people would look at buying homes which could only help improve the economy,” Cummings said. One of the first homebuyers to qualify and take advantage of the state program was a couple who bought a $350,000 house off Urton Lane in Middletown. They said they were ready for a bigger home after the birth of twins a few months previously. However, they said that getting the house for $50,000 off the asking price was the most powerful motivator—not necessarily the rebate. “It (the credit) was certainly the icing on the cake,” he said. “But more important was the opportunity to buy a brand new home at a tremendous discount.” The intention of the state tax credit is to help move a huge inventory of new unsold homes in the Louisville area. If you would like to take advantage of the first-time homebuyers credit,  you must act quickly.  The offer is set to expire in a few days.  Contact Louisville Properties and our professional brokers will help you find the right home for you.