- The tax credit is for 10 percent of the cost of the home, not to exceed $7,500.
- It?s important to note the tax credit must be paid back over a period of 15 years like an interest-free loan.
- It?s available for any single-family residence (including condos) that will be used as a principal residence.
- The tax credit reduces income tax liability for the year of purchase. It can be claimed on tax return for that tax year.
- There is an income requirement. To be eligible for the full credit, individuals must have an adjusted gross income of no more than $75,000 ($150,000 on a joint return). The tax credit is not available for individuals with incomes of $95,000 or higher ($170,000 on a joint return).
- Applicants must be first-time homebuyers. (The buyer and the buyer?s spouse may not have owned a principal residence in three years previous to purchase.)
- The credit applies for purchases on or after April 9, 2008, and before July 1, 2009.
Source: National Association of REALTORS?