Who is eligible?

•  First-time home buyers, are defined as buyers who have not owned a principal residence in the past three years.  They may be eligible for a tax credit for 10% of the home purchase price up to a maximum of $8,000.
•  Repeat buyers, existing home owners who have been residing in their principle residence for five consecutive years and are purchasing a home to be their principle residence may be eligible for a tax credit of 10% of the home purchase price up to a maximum amount of $6,500.
•  All U.S. citizens who file taxes are eligible to participate in the program provided they meet the eligibility requirements.

What are the income limits?

•  Home buyers who file as single or head-of-household taxpayers can claim the full credit if their modified adjusted gross income is less than $125,000.
•  For married couples filing jointly the combined income limit is $225,000.
•  Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

When is the credit available?

•  The eligibility period is for homes purchased after November 6th, 2009 and before May 1st, 2010.  However, home purchases subject to a binding sales contract signed by April 30th, 2010 will qualify for the tax credit provided the closing occurs prior to July 1st, 2010. For a new “to be built” home purchase, contracts must be written prior to January 15th to meet closing deadline of July 1st, 2010.

What types of homes qualify?

•  All homes with a purchase price of less than $800,000 qualify, including newly-constructed , resale, single-family detached, townhomes, or condominiums, provided that they home will be used as the principal residence.

Is the tax credit refundable?

•  A “refundable” credit means that if the amount of federal income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
•  For example: A tax payer who qualified for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government.

 For more information visit: www.federalhousingtaxcredit.com

*This site contains information from the Worker, Homeownership, and Business Assistance Act of 2009.  Inverness Homes accepts no responsibility for the accuracy of these statements.