Texas Mortgage Credit Program

• The TDHCA helps Texas residents purchase new homes, catering especially to first-time buyers. The program issues Mortgage Credit Certificates that allow homebuyers to claim a tax credit on their mortgage. This credit, a dollar-for-dollar reduction on federal tax liability, equals 30 percent of the mortgage loan's annual interest, not to exceed annual federal income tax liability. Texas residents who haven't owned a home in the past three years, use their home as their primary residence and qualify for a mortgage loan from a state-approved lender are eligible for this state-exclusive tax credit.
  
  

Renewable Energy Systems Property Tax Exemption

• Though the majority of Texas' green energy tax incentives apply to businesses, the State Energy Conservation Office offers one tax break for homeowners. The Renewable Energy Systems Property Tax Exemption – which caters to commercial, industrial and residential properties – offers an exemption from taxation based on the value of eco-friendly additions to the property, including solar and wind-powered devices used to heat, cool or provide energy to the home.
  
  

TDHCA First-Time Homebuyer Program

• Though the TDHCA's First-Time Homebuyer Program isn't a tax break, it does help Texas residents on the road to homeownership. This program offers 30-year, fixed rate loans to homebuyers in the Lone Star State, specifically targeting low-to-moderate income buyers. These loans also provide recipients with down payment and closing cost assistance.
  
  

Applying

• Homeowners and first-time homebuyers can apply for the TDHCA's Mortgage Credit Program or the First-Time Homebuyer Program at participating, state-approved mortgage lenders. The TDHCA offers a full list of lenders – available in locales from Abilene to Wylie and totaling over 1,050 as of 2011 – at its official website. Homeowners can use Form 50-123 to apply for the Renewable Energy Systems Property Tax Exemption. The state's Window on State Government website offers this form for free download.