What does the new federal housing tax credit mean for you?
In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000* for first-time home buyers.
But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible.
$8,000 Home Buyer Tax Credit at a Glance
· The tax credit is for first-time home buyers: defined as a purchaser not having owned a home within the previous 3-year period.
· 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.
· The tax credit can be claimed on 2008 income tax forms even if the purchase took place in 2009.
· Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
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The City of Peoria also has some great programs to help people buy homes. Read down for more information.