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Homebuyer Tax Credit Modifications - Explained.. .

Via Pederson Properties, Inc. (Coldwell Banker Residential Brokerage):

Homebuyer Tax Credit - As modified in the American Recovery and Reinvestment Act of 2009

(Major Modifications in Italic)

The following information highlights the differences between the 2008 and the 2009 Housing Tax Credit...

Feature	Credit as Created July '08 - Applies to all Qualified Purchases on or After April 9th, 2008	Revised Credit - Effective for Purchases on or After January 1st, 2009 & on or Before November 30th, 2009
Amount of Credit	Lesser of 10% of cost of home or $7,500	Maximum credit amount increased to $8,000
Eligible Property	Any single family residence (including condos, co-ops) townhouses that will be used as a principal residence.	No change All principal residences eligible.
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	No change Purchasers will continue to receive refund for unused amount when tax return is filed.
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).	No change Same income limits continue to apply.
Qualifications	Purchasers (and purchaser's spouse) may not have owned a principal residence in three (3) years previous to purchase.	No change Still available to First Time Homebuyers or those who have not owned a principal residence in the three (3) years prior to purchase.
Revenue Bond Financing	No credit allowed is home is financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
Repayment	Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1st, 2009 and on or before November 30th, 2009.
Recapture	If home sold before 15-year repayment period ends, then outstanding balance or repayment amount recaptured on sale.	If home is sold within three (3) years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination	July 1st, 2009 (But note program changes for 2009)	On November 30th, 2009.
Effective Date	Purchases on or after April 9th, 2008 and before January 1st, 2009. Repayment to begin for 2010 tax year.	All revisions are retroactive to January 1st, 2009.

Source: National Association of REALTORS®