TaxSmart Mortgage Credit Certificate
NOTE: The TaxSmart program is currently on haitus and will resume in the 2nd quarter of 2010. Please check back for updated program information and details.
If you’re buying a home in Chicago, you can save thousands of dollars in federal income taxes with TaxSmart, a mortgage credit certificate program offered by the City of Chicago in partnership with local lenders.
TaxSmart turns your mortgage into one that gives you a federal income tax credit equal to 20% of the interest you pay on your mortgage each year. TaxSmart is also available for home improvement loans.
TaxSmart can be used by eligible homebuyers citywide to purchase one to four unit buildings – single family homes, condominiums, townhomes or 2, 3, or 4 flats.
Applicants must meet income and purchase price guidelines (see below). Homebuyers in non-target areas must be first-time homebuyers or have not owned a home in the last three years.
Income Limits
| Non-Target Area | Target Area | |
| 1 Person Household | $60,320 | $72,384 |
| 2 Person Household | $75,400 | $90,480 |
| 3+ Person Household | $86,710 | $105,560 |
Purchase Price Limits
| Existing | New Construction | |
| Unit Non-Target | $325,894 | $325,894 |
| Unit Target | $398,315 | $398,315 |
| Unit Non-Target | $367,060 | Not Eligible |
| Unit Target | $448,629 | $448,629 |
| Unit Non-Target | $445,960 | Non Eligible |
| Unit Target | $545,063 | Not Elibible |
| Unit Non-Target | $514,570 | Not Eligible |
Click here to see a list of TaxSmart lenders.
Click here to see a list of developments in target areas.