FEATURE

CREDIT AS  CREATED JULY 2008

APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER

APRIL 9, 2008

REVISED CREDIT -

EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1,^- 2009^- AND BEFORE

 DECEMBER 1, 2009

Amount of
Credit

Lesser of 10 percent of cost of home or
$7500

Maximum credit amount
increased to $8000

Eligible Property

Any single family residence (including
condos, co-ops, townhouses) that will
be used as a principal residence.

No change
All principal residences eligible.

Refundable

Yes. Reduces (or can eliminate)
income tax liability for the year of
purchase. Any unused amount of tax
credit refunded to purchaser.

No change
Purchasers will continue to
receive refund for unused amount
when tax return is filed.

Income Limit

Yes. Full amount of credit available for
individuals with 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).

No change

Same income limits continue to
apply.

First-time
Homebuyer
Only

Yes. Purchaser (and purchaser's
spouse) may not have owned a
principal residence in 3 years previous
to purchase.

No change
Still available for first-time
purchasers only. Three-year rule
continues to apply.

Revenue Bond
Financing

No credit allowed if home financed
with state/local bond funding.

Purchasers who utilize revenue bond financing can use credit.

Repayment

Yes. Portion (6.67% of credit or $500)
to be repaid each year for 15 years,
starting with 2010 tax filing.

No repayment for purchases on
or after January 1, 2009 and
before December 1, 2009

Recapture

if home sold before 15-year repayment
period ends, then outstanding balance
of repayment amount recaptured on
sale.

If home is sold within three years
of purchase, entire amount of
credit is recaptured on sale.
Applies only to homes purchased
in 2009.

Termination

July 1, 2009
(But note program changes for 2009)

December 1, 2009

Effective Date

Purchases on or after April 9, 2008 and
before January 1, 2009. Repayment to
begin for 2010 tax year.

All revisions are effective as of
January 1, 2009