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FIRST-TIME HOMEBUYER TAX CREDITAs Modified in the American Recovery and Reinvestment ActMajor Modifications ShadedFebruary 2009
FEATURECREDIT AS CREATED JULY 2008APPLIES TO ALL QUALIFIEDPURCHASES ON OR AFTERAPRIL 9, 2008REVISED CREDIT –EFFECTIVE FORPURCHASES ON ORAFTER JANUARY 1, 2009AND BEFORE DECEMBER1, 2009Amount of Credit
Lesser of 10 percent of cost of home or $7500Maximum credit amountincreased to $8000
EligibleProperty
Any single family residence(including condos, co-ops,townhouses) that will be usedas a principal residence.No changeAll principal residenceseligible.
Refundable
 Yes. Reduces (or caneliminate) income tax liabilityfor the year of purchase. Anyunused amount of tax creditrefunded to purchaser.No changePurchasers will continue toreceive refund for unusedamount when tax return isfiled.
IncomeLimit
 Yes. Full amount of creditavailable for individuals withadjusted gross income of nomore than $75,000 ($150,000on a joint return). Phases outabove those caps ($95,000 and$170,000).No changeSame income limitscontinue to apply.
First-timeHomebuyer Only
 Yes. Purchaser (andpurchaser’s spouse) may nothave owned a principalresidence in 3 years previousto purchase.No changeStill available for first-timepurchasers only. Three-year rule continues toapply.
RevenueBondFinancing
No credit allowed if homefinanced with state/local bondfunding.Purchasers who utilizerevenue bond financing canuse credit.
Repayment
 Yes. Portion (6.67% of credit or$500) to be repaid each yearfor 15 years, starting with 2010tax filing.No repayment forpurchases on or after January 1, 2009 and beforeDecember 1, 2009
Recapture
If home sold before 15-yearrepayment period ends, thenoutstanding balance of repayment amount recapturedIf home is sold within threeyears of purchase, entireamount of credit isrecaptured on sale. Applies
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