| FEATURE | 2008 | 2009 |
| Definition of a First Time Home Buyer | Buyer and Buyers Spouce may not have owned a principal residence for 3 years prior to purchase. | No Change |
| Amount of Tax Credit | 10% of the Purchase price or $7,500 whichever is less. | Maxium Credit amount increased to $8,000. |
| True Credit or Repayment | The credit must be repaid–6.67% of credit or $500 each year for 15 years, start with 2010 tax filing; if the home is sold before this, the balance must be pepaid at closing. | True Credit– unless the home is sold within three years, at which point the first-time homebuyer (who is now the seller) must repay the entire amount to the IRS at clsoing. |
| Effective Dates | Applies to homes purchased between April 9th, 2008 and December 30, 2008 with repayment starting in 2010. | Applies to homes purchased between January 1, 2009 and November 30, 2009 |
| Tax Implications | Reduces or can eliminate income tax liability for the year of purchase; e.g., buyers will pay less tax or receive a bigger refund. | No Change |
| Eligible Properties | Any Single family residence (including condos, co-ops, townhomes, ect) that will be used as a principal residence. | No Change |
| Income Limits | Full credit for individuals with a modified adjusted gross income of $75,000 or less ($150,000 on a joint return); partial credit for income from $75,000 to $95,000 ($150,000 to $170,000 on a joint return) | No Change |
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