ECONOMIC RECOVERY ACT OF 2008

 

FEATURE

 

H.R. 3221

Housing and Economic Recovery Act of 2008

 

 

Amount of Credit

 

Ten percent of cost of Home, not to exceed

$7500  Click Here for more info

 

 

Eligible Property

 

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

 

 

Refundable

 

Yes.  Reduces income tax liability for the year of purchase.  Claimed on tax return for that tax year.

 

 

Income Limit

 

Yes.   Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000, respectively).

 

 

First-time Homebuyer Only

 

Yes.   Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. 

 

Recapture

 

Yes.  Portion (6.67 % of credit) to be repaid each year for 15 years.  If home sold before 15 years, then remainder of credit recaptured on sale.

 

 

Impact on District of Columbia Homebuyer Credit

 

DC credit not available if purchaser uses this credit.

 

 

Effective Date

 

Purchases on or after April 9, 2008

 

 

Termination

 

July 1, 2009

 

Interaction with Alternative Minimum Tax

Can be used against AMT, so credit will not throw individual into AMT.  


This credit is in effect now.  Get started looking at home.  Click here for direct MLS access for the Ann Arbor and surrounding areas.