Here’s the Home Buyer Tax Credit at a Glance!

February 21, 2009 · Print This Article

Can you take advantage of the $8,000 Home Buyer Tax Credit?

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Below you can read about how you can take advantage of the $8,999 home buyer tax credit to purchase a home in Charlotte, North Carolina or anywhere in the United States.

What is it?

The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The Law’s Other Provisions :

In addition to the tax credit the American Recovery and Reinvestment Act of 2009 has several other procitions that will benefit home buyers and the housing market. The legislation:

Will help home buyers in high-cost markets by extending the FHA, Fannie Mae and Freddie Mac loan limit of $729,750 through the end of 2009.
Allows state housing finance agencies to help buyers at closing by advancing the credit as a loan using proceeds from tax-exempt bonds.
Extends the tax code section 25C credit for energy-efficient home improvements through the end of 2010; increases the credit rate from 10 percent to 30 percent; raises the lifetime cap from $500 to $1,500; expands the list of eligible improvements.
For 2008 operations, expands the net operating loss carryback period from two years to five years for small businesses (businesses with average gross receipts of no more than $15 million over the previous three years).
Temporarily allows exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects.
Provides a “patch” for the Alternative Minimum Tax for tax year 2009.
Increases bonus depreciation and section 179 small business expensing for business investment in 2009.
Increases New Markets Tax Credit allocating authority for 2008 and 2009.
Delays for one year—from 2011 to 2012—the start of the three percent government contractor withholding requirement.