On July 30, 2008 President Bush signed a major housing bill H.R. 3221 into law. As part of this housing bill, Congress created, a new temporary tax credit to provide an incentive to first time home-owners. The $7500 tax credit will be for the purchase of a principle residence on or after April 9, 2008 and before July 1, 2009.

1. Opportunity of a Lifetime for
First Time Home Owners
Housing Stimulus Bill Synopsis
First Time Home Buyer Tax Credit
Housing Economic Recovery Act of 2008

2. Amount of Credit:
10% of cost of home,
not to exceed $7500
First Time Home Buyer Tax Credit
Housing Economic Recovery Act of 2008

3. Eligible Property:
Any single family residence
(including Condominiums and Co-operatives)
that will be used as a principle residence
First Time Home Buyer Tax Credit
Housing Economic Recovery Act of 2008

4. Refundable:
Yes.
Reduces income tax liability for the year of
purchase.
Claimed on tax return for that tax year.
First Time Home Buyer Tax Credit
Housing Economic Recovery Act of 2008