A $7,500 tax credit for first-time homebuyers that will expire July 1, 2009, must be repaid over 15 years — making it, in effect, an interest free loan. A dedicated Web site, www.FederalHousingTaxCredit.com “The tax credit is the best stimulative measure,” NAHB President Sandy Dunn said in a press release. “It will increase housing demand, get home buyers back into the marketplace and fight falling home prices, which threaten the economy as a whole.
As with everything there is a time limit. The house must be contracted between April 9,2008 and before July 1, 2009 to be eligible.
First-Time Home Buyer Tax Credit at a Glance
- The tax credit is available for first-time home buyers only.
- The maximum credit amount is $7,500.
- The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009. - Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.