HOUSING AND ECONOMIC RECOVERY ACT OF 2008
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First ‐time Homebuyer Tax CreditFEATURE |
H.R. 3221 Housing and Economic Recovery Act of 2008 |
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Amount of Credit |
Ten percent of cost of home, not to exceed $7500 |
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Eligible Property |
Any single ‐family residence (including condos, co‐ops) that will be used as a principal residence. |
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Refundable |
Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year. |
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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). |
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First ‐time Homebuyer Only |
Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. |
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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. |
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Impact on District of Columbia Homebuyer Credit |
DC credit not available if purchaser uses this credit. |
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Effective Date |
Purchases on or after April 9, 2008 |
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Termination |
July 1, 2009 |
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Interaction with Alternative Minimum Tax |
Can be used against AMT, |
