First Time Home Buyer $7500 Tax Credit

Who is Eligible?

Only first time home buyers, which is defined as someone who has not owned a home in the last 3 years.



Eligible Property

Any single-family home residence (including condos) that will be used as a principal residence.



Effective Dates

First time home buyers will receive the credit for purchasing any home on or after April 9, 2008 and before July 1, 2009.



Income Limit

Home buyers who file as a single or head-of-household taxpayers can claim the full $7500 if their adjusted gross income is less than $75,000.

For married couples filing a joint return, the income limit is $150,000.

Single or head-of-household taxpayers who ear between $75,000-$95,000 are eligible to receive a partial first time home buyers tax credit.

Married couples who earn between $150,000-$170,000 are eligible to receive a partial first time home buyers tax credit.



How do you receive it

Buyers can take the tax credit in their 2008 or 2009 return.

It reduces income tax liability for the year of purchase.



Payback Provisions

It serves as an interest free loan to be repaid over 15 years.

If the homeonwner sells before it is paid back, the remaining balance would be paid through the profit of the home sale. If there is an insufficient profit, then the remaining payback would be forgiven.