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 .... |