Here are NEW Government Incentives for

First-Time Home Buyers:

HOUSING AND ECONOMIC RECOVERY ACT OF 2008
First-time Homebuyer Tax Credit

 
FEATURE  
  
H.R.  3221  
Housing  and  Economic  Recovery  Act  of  2008  
  
  
Amount  of  Credit  
  
Ten  percent  of  cost  of  home,  not  to  exceed   
$7500  
  
  
Eligible  Property  
  
Any  single-family  residence  (including  condos,  co-ops)  that  will  be  used  as  a  principal  residence.  
  
  
Refundable  
  
Yes.   Reduces  income  tax  liability  for  the  year  of  purchase.   Claimed  on  tax  return  for  that  tax  year.  
    
  
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,  respectively).  
  
  
First-time  Homebuyer  Only  
  
Yes.    Purchaser  (and  purchaser’s  spouse)  may  not  have  owned  a  principal  residence  in  3  years  previous  to  purchase.    
  
Recapture  
  
Yes.   Portion  (6.67  %  of  credit)  to  be  repaid  each  year  for  15  years.   If  home  sold  before  15  years,  then  remainder  of  credit  recaptured  on  sale.  
  
  
Impact  on  District  of  Columbia  Homebuyer  Credit  
  
DC  credit  not  available  if  purchaser  uses  this  credit.  
  
  
Effective  Date  
  
Purchases  on  or  after  April  9,  2008 
  
  
Termination  
  
July  1,  2009 
  
Interaction  with  Alternative  Minimum  Tax  
Can  be  used  against  AMT,  so  credit  will  not  throw  individual  into  AMT.