The Economic Recovery Plan signed by President Obama provides for a tax credit to first-time homebuyers who purchase a home between January 1, 2009 and December 1, 2009. The tax credit can reach 10% of the purchase price up to maximum credit of $8,000. To qualify for the credit, the house must be used by the buyers as a principal residence and the buyers cannot have owned another principal residence for the past three years. The new homeowners must also live in the house for at least three years, or they may have to return the credit. Additionally, to qualify for the credit buyers must make less than $75,000 for singles or $150,000 for couples. Higher-income buyers may qualify for a partial credit. Please consult with your accountant for more details.
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