The "American Recovery and Reinvestment Act of 2009," passed the House and Senate on Friday, February 13,2009
(edited)The President did sign this bill on Feb. 17th. The new bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
This credit does not require repayment as long as you stay in the home three years, or more.
A first time home buyer is defined as someone who has not owned a property in the last three years.
This credit can not be received if a first time buyer purchases a property to rent out. It has to be your principle residence.
This credit applies if you purchase a single property residence, or condo, or a townhouse.
The income requirements are maximum $75,000 for a single buyer, and $150,000 for a married couple.
The credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.