FIRST-TIME HOMERUVER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications italicized
| FEATURE |
CREDIT AS CREATED JULY 2008 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 |
Lessor of 10 percent of cost of home or $7500 |
Maximum credit amount increased to $8000. |
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 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). |
No change
Same income limits continue to apply. |
| First-time Homebuyer Only |
Yes. Purchaser (and purchaser's spouse) 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. |
Purchaser 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 |
In home sold before 15-year repayment 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 |
July 1, 2009
(But note program changes for 2009) |
December 1, 2009 |
| Effective Date |
Purchase 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 |
