HOUSING AND ECONOMIC RECOVERY ACT OF 2008
|
First‐time Homebuyer Tax Credit FEATURE |
H.R. 3221 Housing and
Economic Recovery Act of 2008 |
|
Amount of Credit |
Ten percent of
cost of home, not to exceed $7500 |
|
Eligible Property
|
Any single‐family residence
(including condos, co‐ops) that will be used as a principal residence. |
|
Refundable |
Yes. Reduces
income tax liability for the year of purchase. Claimed on tax return for 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 principal 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 |
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. |