Answers to the most commonly asked questions
In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation that provides a tax credit of up to $8,000 for first-time home buyers. The American Recovery and Reinvestment Act of 2009, signed into law on February 17, 2009, is a stimulus package that makes a non-repayable tax creditof up to $8,000 to qualified first-time home buyers purchasing a principal residence on or after January 1, 2009, and before December 1, 2009.
The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• 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 following information has been edited for The following information has been edited for length and is used with permission from the National Association of Home Builders’ website, www.FederalHousingTaxCredit.com
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