First-Time Homebuyer Tax Credit

As Modified in the American Recovery and Reinvestment Act February 2009 Major Program Features
Amount of Credit	Lesser of 10 percent of cost of home or $8000
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.
Income Limits	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 required.
Recapture	If home is sold within three years of purchase, entire amount of credit is recaptured on sale.
Effective Dates	January 1, 2009 to December 1, 2009.