The stimulus bill, having had its original House and Senate versions reconciled in Committee, is now on its way to President Obama's desk in time for his President's Day goal. I'm still wading through the Committee report text, but here is what I can see:
- Credit is $8000 (up from the House version of $7500 but down from the Senate's $15,000)
- Does not have to be repaid as long as you own the house for 36 months from the date of purchase and you purchased in 2009. If you sell before 3 years then you have to repay the entire thing.
- Applies to purchases from January 1 through December 1, 2009. (Note: I've seen some other reports saying 12/31, but from what I read in the Conference report posted online, it says 12/1) If you bought in 2009 you can elect to treat it as purchased on 12/31/2008 so you can claim it on your 2008 return.
- Is a refundable credit - so if you don't owe $8000 in income taxes then you get the difference back (Note this is an update from a previous post which stated non-refundable.)
- DC buyers cannot claim both this credit and the $5000 DC homebuyer credit.
- Unlike the previous $7500 credit, you can claim the credit even if your mortgage was financed by a mortgage revenue bond (like with VHDA loans) - check with your tax advisor!
- Limitations are similar to the previous $7,500 "credit" (interest free loan) in 2008: income restrictions start at $75,000 (single) or $150,000 (married filing joint), and have not owned a home in previous 3 years.
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