Back in November I blogged about the original Housing and Economic Recovery Act of 2008, specifically the $7,500 tax credit for first-time home buyers. With the changes in our economy and the new president, there is now a new incentive for first time homebuers out there!

The new bill designates a true $8,000 tax credit. If you don’t remember, the original bill was in all reality an interest free loan from the government that had to be paid back over 15 years. This new bill does not have to be paid back and is credited dollar-for-dollar as a reduction to you as a taxpayer. So lets do the same thing we did last time, here is the run down:

• The tax credit is for first-time home buyers only
• The tax credit does not have to be repaid!
• The tax credit is equal to 10% 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 a Modified Adjusted Gross Income (MAGI) of up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
• However, if your MAGI is more than that, you may still be eligible for a reduced credit amount

With the intent to stimulate the housing market do you think this tax credit will help? Are you spreading the news to your potential buyers?

Again here is the website to get all your facts: Federal Housing Tax Credit