First-Time Homebuyer Tax Credit

FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications "Italicized"
February 2009

REVISED CREDIT-EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

Amount of Credit - Lesser of 10% of cost of home or Maximum credit amount increased to $8,000
Eligible Property - No Change, all principal residences eligible.
Refundable - Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. No Change. Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit - Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000)
First-time Homebuyer Only - Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.
Revenue Bond Financing - Purchasers who utilize revenue bond financing can use credit.
Repayment - No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture - If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009
Termination - December 1, 2009
Effective Date - All revisions are effective as of January 1, 2009