| 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 % of cost of home or $7500
|
Maximum credit amount increased to $8,000 |
| Eligible Property |
Any single family residence (including condos
co-ops, townyhouses) that will be used as a
prinicpal 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
|
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.
|
|
|
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
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 purchases in 2009.
|
| Termination |
July 1, 2009
|
December 1, 2009 |
| Effective Date |
Purchases on or after April 9, 2008 and before
January 1, 2009. Repayment to begin 2010 tax year.
|
All revisions are effective as of January 1, 2009. |