Number: RL34664
Title: The First-Time Homebuyer Tax Credit
Authors: Carol A. Pettit, American Law Division 
Abstract: The Housing Assistance Tax Act of 2008, part of the Housing and Economic Recovery Act of 2008 (P.L. 110-289), created a refundable tax credit for first-time homebuyers. First-time homebuyers generally include individuals who have not had a present interest in a principal residence within three years before buying the new property. The credit is based on 10% of the purchase price of the principal residence, but may not exceed $7,500. The credit may be reduced or eliminated for married taxpayers with income over $150,000 or other taxpayers with income over $75,000. To be eligible for the credit, taxpayers must purchase property after April 8, 2008, and before July 1, 2009. The property must be used as the taxpayer's principal residence.
Pages: 11
Date: September 23, 2008