$5000 DC homebuyer tax credit renewed

Title Insurance with Federal Title & Escrow Company

Congress renewed the $5,000 DC homebuyer tax credit for another two years as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, the office of Congresswoman Eleanor Holmes Norton (D-DC) announced earlier this month.

The DC tax incentive will be retroactive for 2010 and continue through 2011.

"First-time homebuyers of a principal residence in the District, who meet income limitations and other eligibility guidelines may qualify for a one-time tax credit for up to $5,000 of the amount of the purchase price," Joe Gentile, vice president of Federal Title & Escrow Company, said.

To qualify as a first-time homebuyer in the District of Columbia, a homebuyer and his/her spouse must not have owned a home in DC during the one-year period before the date of purchase, said Gentile, adding that a homebuyer who owns property outside of DC may still be eligible for the $5,000 tax credit, as long as they qualify as a first-time homebuyer in the District.

DC's $5,000 homebuyer tax credit was first introduced in 1997 and has been renewed every year since.

"As the economy emerges from the Great Recession, [tax incentives] for our residents to buy houses could not come at a better time," Norton said in a statement. "House prices will not be as low as they are now for years to come. These tax incentives, which can only be used in the District, will also help stabilize the city's economy and to accelerate our economy's recovery."

Federal Title's website contains more information on the $5,000 DC homebuyer tax credit, including how to qualify and where to access the proper tax forms to claim the credit.

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