FIRST-TIME HOMEBUYER TAX CREDIT - Modified in American Recovery and Reinvestment Act - February 2009

FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Italicized
February 2009
FEATURE

REVISED CREDIT –
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit

Maximum credit amount increased to $8000

Eligible Property
No change
All principal residences eligible.

Refundable
No change
Purchasers will continue to receive refund for unused amount when tax return is filed.

Income Limit
No change
Same income limits continue to apply.

First-time Homebuyer Only
No change
Still available for first-time purchasers only. Three-year rule continues to apply.

Revenue Bond Financing
Purchasers who utilize revenue bond financing can use credit.

Repayment
No repayment for purchases on or after January 1, 2009 and before December 1, 2009

Recapture
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
All revisions are effective as of January 1, 2009