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Features
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Credit As Created JULY 2008-
Applies to All Qualified
Purchasers on or After April 9, 2008.
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Revised Credit-Effective
For purchases on or After January 1, 2009, and Before December 1, 2009.
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Amount of Credit
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Lesser of 10 percent of cost of home or $7500
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Maximum credit amount
Increased to $8000
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Eligible
Property
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Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.
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No change
All principal residences eligible.
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Refundable
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Yes. Reduces (or can eliminate) Income tax liability for the year of purchase. Any unused amount of tax credit refunded to the purchaser.
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No Change
Purchaser will continue to receive refund for unused amount when tax is filed.
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Income Limit
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Yes. Full Amount of Tax credit available for individuals with adjusted gross income of no more then $75,000 ($150,000 on joint return). Phases out above those caps ($95,000 and $170,000).
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No change
Same income limits continue to apply.
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First-time
Home buyer
Only
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Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.
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No change
Still available for first-time purchasers only. Three year rule still apply.
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Revenue Bond Financing
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No credit allowed if home financed with state or local bond funding.
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Purchaser who utilizes revenue bond financing can use credit.
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Repayment
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Yes. Portion (6.67% of the credit or $500) to be paid each year for 15 years starting with 2010 tax filing.
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No repayment for purchases on or after January 1, 2009, and before December 1, 2009.
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Recapture
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If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.
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If home is sold within 3 years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
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Termination
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July 1, 2009
(But note program changes for 2009)
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December 1, 2009
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Effective Date
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Purchases on or after April 9, 2008, and before January 1, 2009. Repayment to begin for 2010 tax year.
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All revised are effective as of January 1, 2009.
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