Housing and Economic Recovery Act of 2008
First-time Homebuyer Tax Credit
|
FEATURE |
H.R. 3221 |
| Amount of Credit | 10% of cost of home, not to exceed $7,500 |
| Eligible Property | Any Single-family residence (including condos, co-ops) that will be used as a principle residence |
| Refundable | Yes. Reduces income tax liability for the year of purchase. Claimed on tax return of 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 principle 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 Home Buyer 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 |
National Association of REALTORS®
Government Affairs Update