Facts about the $7,500 Tax Credit

• The tax credit is for 10% of the purchase price, but not to exceed $7,500.  If you purchased a home that cost $50,000 (50,000 x 10%), you tax credit would be $5,000.  If you purchase a home that cost $250,000, your tax credit would be $7,500 as the maximum.
• Single family homes, condos and co-ops are eligable properties.
• The $7,500 tax credit is received in the form of a tax refund after filing your 2008 or 2009 federal income tax.  Consult your tax advisor with specific questions about your situation.
• The income limit is $75,000 for individuals and $150,000 for those filing a joint return.  Above this the credit phases out in proportion to your income.
• Only individuals who have not owned a home as a primary residence in the 3 years previous to the purchase qualify.  A primary residence is identified as a home that someone lives in greater than 50 percent of the year.  If you own a home that you rent out in one city and currently rent a home or apartment in another city, you may qualify.
• The credit is a 15 year interest-free loan which must be repaid over a 15 year period with each yearly payment being just over $500.  If you sell the home before then, you will have to pay back a portion.  The specifics on this payback have not been worked out.  Consult your tax advisor if you are planning to sell to understand the impact this may have on you.
• This tax credit is for homes purchased after April 9, 2008 and before July 1, 2009.