Q: What is the amount of the tax credit?
A: The tax credit is equivalent to 10% of the purchase price of a house up to $8,000.

Q: When do I have to buy to be able to take advantage of the tax credit?
A: Effective for purchases on or after January 1, 2009 and before December 1, 2009.

Q: Do I have to be a first-time homebuyer?
A: Yes.  The purchaser and the purchaser's spouse may not have owned a principal residence for 3 years before buying a house.

Q: Which properties are eligible for the credit?
A: All principal residences are eligible.

Q: Are there income limits?
A: Yes.  The full amount of credit is available for individuals with an adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000).

Q: Is the tax credit refundable?
A: Yes.  The tax credit reduces (or can eliminate) income tax liability for the year of the purchase.  Purchasers will receive a refund for any unused amount of the tax credit when they file their tax returns.

Q: Do I have to repay this credit over a period of time?
A: No.  There is no repayment for purchases on or after January 1, 2009 and before December 1, 2009.

Q: Can the tax credit be recaptured?
A: Yes, if the home is sold within 3 years of purchase, the entire amount of credit will have to be repaid to the government.