September, 2008
Housing and Economic Recovery Act of 2008
First-Time Homebuyer Credit
| Feature | H.R. 322 1Housing and Economic Recovery Act of 2008 |
| Amount of Credit | Ten percent 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 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 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. |
| Effective Date | Purchases on or after April 9th, 2008 |
| Termination Date | July 1, 2009 |
| Interaction with Alternative Minimum Tax | Can be used against AMT, so credit will notthrow individual into AMT |
| *Informative Chart from the National Association of REALTORS ® website: www.realtor.org. | |
