2009 Stimulus Plan and Housing

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the 2008 tax credit, the new credit does not have to be repaid! Although it had been discussed allowing this tax credit for all home purchases, the final bill that was signed by President Obama only applies to first-time home buyers.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. There are additional requirements to qualify; you can find the federal housing tax credit official website by clicking HERE.