Information on the previous First Time Homebuyer’s Tax Credit from the IRS.

This information is contained in the text of the second half of HR1-2009-111th Congress

The tax credit, in the form of a 15 year, interest free loan, has been raised from $7,500 to $8,000. The required recapture period has been changed from a prorated period of the life of the loan to a period ending 3 years following the date of purchase for homes purchased in 2009 only [this needs clarification - it appears if the home is sold during the first 36 months there is a full recapture but after 3 full years there is no recapture. I question this interpretation because it makes no sense]. The time period is extended to cover home purchases made prior to December 1, 2009 (formerly ended July 1, 2009).

SEC. 1006. EXTENSION OF AND INCREASE IN FffiST?TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY.
(a) EXTENSION.-
(1) IN GENERAL.-Section 36(h) is amended by striking”July 1, 2009″ and inserting “December 1, 22 2009″.
(2) CONFORMING AMENDMENT.-Section 36(g)
is amended by striking “July 1, 2009″ and inserting “December 1, 2009″.
(b) INCREASE.-
(1) IN GENERAL.-Section 36(b) is amended by striking “$7,500″ each place it appears and inserting “$8,000″.
(2) CONFORMING A1VIENDMENT.-Section 36(b) (1) (B) is amended by striking “$3,750″ and inserting “$4,000″.
WAIVER OF RECAPTURE.-
(1) IN GENERAL.-Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph:
“(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009.-In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before December 1, 2009-
“(i) paragraph (1) shall not apply, and
“(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.”.
(2) CONFORMING AIVIENDMENT.-Subsection (g) of section 36 is amended by striking “subsection (c)” and inserting “subsections (c) and (f) (4)(D)”.
(d) COORDINATION WITH FIRST-TIME HOMEBUYER CREDIT FOR DISTRICT OF COLUMBIA.-
(1) IN GENERAL.-Subsection (e) of section 1400C is amended by adding at the end the following new paragraph:
“(4) COORDINATION WITH NATIONAL FIRST TIME HOMEBUYERS CREDIT.-No credit shall be allowed under this section to any taxpayer with respect to the purchase of a residence after December 31, 2008, and before December 1, 2009, if a credit under section 36 is allowable to such taxpayer (or the taxpayer’s spouse) with respect to such purchase.”.
(2) CONFORMING AlVIENDMENT.-Section 36(d) is amended by striking paragraph (1).
(e) REMOVAL OF PROHIBITION ON FINANCING BY MORTGAGE REVENUE BONDS.-Section 36(d), as amended by subsection (c)(2), is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively.
(f) EFFEC’l'IVE DATE.-The amendments made by this section shall apply to residences purchased after December 31, 2008.