Applies to All Qualified Purchases On or After April 9, 2008
REVISED CREDIT
Effective for Purchases On or After January 1, 2009 and Before December 1, 2009
Amount of Credit
Lesser of 10 percent of cost ofhome or $7,500. Maximum credit amount increased to $8,000
Eligible Property
Any single family residence(including condos, co-ops, townhouses) that will be used as a principal residence. 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 availablefor 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). No change. Same income limits continue to apply.
First-time Homebuyer Only
Yes.
Purchaser (and purchaser’sspouse) may not have owned a principal residence in 3 years
previous to purchase. No change. Still available for first-time purchasers only. Three-year
rule continues to apply.
Revenue Bond Financing
No credit allowed if home financed with state/local bond funding.
Purchasers who utilize revenue bond financing can use credit.
Repayment
Yes. Portion (6.67% of credit or$500) to be repaid each year for 15 years, starting with 2010 tax filing.
No repayment for purchases on or after January 1, 2009 and before December 1, 2009.
Recapture
If home sold before 15-yearrepayment period ends, then outstanding balance of repayment
amount recaptured on sale.
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
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.
All revisions are effective as of January 1, 2009.
