• An extension of the $8,000 tax credit to first time homebuyers if under binding purchase contract on or before April 30, 2010, and closed before July 1, 2010.
  
  
• An expansion of the program to grant a tax credit up to $6,500 to homeowners who execute a binding purchase contract for a replacement principal residence before 04/30/10 and close on the home before 07/01/10.  To be eligible for the $6,500 tax credit, a homeowner must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years & meet income guidelines.  If you sold your home two years ago and currently rent, but lived in that home five consecutive years of the last eight, you are eligible for the tax credit as long as you meet the other requirements of the law.  For married couples, both spouses must qualify as "long-time" residents.
  
  
• An increase of income limitations for full tax credit to $125,000 for single buyers & $225,000 for married couples filing jointly  (previously $75,000 for individuals & $150,000 for married couples).   A reduced credit is available for individuals with income between $125,000 & $145,000 or married couples between $225,000 & $245,000.
  
  
• A limit of $800,000 purchase price. 
  
  
• Purchaser must attach documentation of purchase to tax return.
   
• A dependant is no longer eligible for the program after 11/07/09.
  
  
• For more details on Tax Credit programs, check here.         

• First-time homebuyer is defined as anyone who has not owned a home in the past three years.  **   For married couples, both spouses must qualify as first-time home buyers.
  
  
• Eligible property is any single family residence (including condos, co-ops & townhouses) that will be used as a principal residence.  **
  
  
• The tax credit is either 10% of the purchase price or up to $8,000 for singles & married couples filing jointly.
  
  
• The tax credit will be claimed on a tax return to reduce the purchaser's tax liability.  If any credit remains unused (your tax liability is less than the credit), then the unused amount will be refunded as a check to the purchaser.  **
  
  
• This is a true tax credit.  There is NO repayment provision.
  
  
• If you bought in 2009, you may elect to treat it as if purchased on 12/31/08, so you can claim it on your 2008 tax return.
  
  
• If the home is sold or ceases to be a principal residence within 36 months of purchase, the entire amount of credit is recaptured on sale.  The present laws for recapture of the credit will apply. 
  
  
• Income limits: The full amount of the tax credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Tax credit phases out with caps at $95,000, single filing & $170,000, joint filing. **
  
  
• The tax credit is available to purchasers who utilize revenue bond financing like the Ohio Bond Program.

** These features are unchanged from the 2008 provisions of the $7500 First-time Homebuyer Tax  Credit outlined below.     Sources: www.house.gov/billtext/hr1_cr_jesb.pdf  ;  Realtor.org

$7,500 First-Time Homebuyer Tax Credit  (effective: 04/09/08-12/31/08) The Housing & Economic Recovery Act of 2008, signed by President Bush in August, 2008, provides for up to a $7,500 tax credit for first-time homebuyers who purchase a home between April 9, 2008 and before January 01, 2009. A first-time homebuyer is defined as anyone who has not owned a home in the past three years.  The credit is either 10% of the purchase price or up to $7,500 for singles & married couples filing jointly.  And the credit is "refundable" which means you can get the credit even if you don’t owe $7,500 worth of income taxes, or any taxes at all.  If your tax liability is less than the credit due, the government will send you a check for the difference. However, whereas it's labeled a tax credit, it would more accurately be described as an interest-free loan since there are provisions that require a portion of the tax credit (6.67% of credit or $500) to be repaid each year for 15 years, starting in 2010. For some buyers, this Tax Credit may be beneficial.  For others, it may be full of pitfalls.  Complete the form below to receive, by email, a detailed description of how the tax credit works to determine if it's right for you.