FEATURE | CREDIT AS CREATED JULY 2008 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 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. | 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-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 | 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 |