The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment.

Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

The tax credit...

• is for first-time home buyers only;
• does not have to be repaid unless the home is sold within three years;
• is equal to 10 percent of the home’s purchase price up to a maximum of $8,000;
• is available for homes purchased on or after January 1, 2009 and before December 1, 2009;
• has income restrictions: 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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