Tax Credit Information

In its efforts to stimulate the economy and revive the housing market, Congress instituted an $8,000 New Home Buyer Tax Credit in January of 2009. The tax credit applied to first-time home buyers and is still available through December 1, 2009.

In November of 2009, the Worker, Homeownership, and Business Assistance Act of 2009 EXTENDED the tax credit through April of 2010 of up to $8,000 for qualified first-time homebuyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat/move-up home buyers through April of 2010.

$8,000 Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only.
• The $8,000 tax credit does not have to be repaid.
• The $8,000 tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The $8,000 credit is available for homes purchased on or after November 6, 2009 and before May 1, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
• So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

$6,500 Home Buyer Tax Credit at a Glance

• The buyer must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
• The $6,500 tax credit does not have to be repaid.
• The $6,500 tax credit is available for homes purchased on or after November 6, 2009 and before May 1, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
• So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July, 1 2010 to close.

The information above was provided by the National Association of Home Builders