First-Time Home Buyer Credits

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In Pennsylvania, more than 65,000 people have already collected $448,614,552 in First-Time Homebuyer Credits

WASHINGTON – The U.S. Department of the Treasury today reminds potential homeowners that they have 30 days left to take advantage of the First Time Homebuyer (FTHB) tax credit before it expires. The FTHB credit provides qualifying taxpayers with up to $8,000 to buy a new home and is available for home purchases under contract before May 1, 2010. In Pennsylvania more than 65,000 people have already collected $448,614,552 in First-Time Homebuyer Credits.

“The First Time Homebuyer credit has helped nearly two million families achieve the American dream of owning their own home,” said Deputy Treasury Secretary Neal S. Wolin. “The expanded tax credit has been one of the great successes of the Recovery Act. Potential homeowners across the country should know about it and should take advantage of it.”

Last year, more than 700,000 taxpayers were able to buy their first home with assistance from the Recovery Act expansion of the First Time Homebuyer Credit. Overall, nearly 1.8 million taxpayers have collected $12.6 billion in tax credits to buy a home, due largely to the Recovery Act.

The Recovery Act expanded the First Time Homebuyer credit by increasing the credit amount to $8,000 for purchases made before Dec. 1, 2009. The Worker, Homeownership and Business Assistance Act, which became law on November 6, 2009, extended the deadline and expanded eligibility to help more American taxpayers. The new deadline extended eligibility to taxpayers who have a binding contract to purchase a home before May 1, 2010 and who close on the home before July 1, 2010. Taxpayers who are long-time residents of the same home are also eligible for a credit of up to $6,500 if they purchase a new principal residence by this deadline.

“This tax credit has helped put money back into the pockets of Americans at a time when they need it most, and it has played a significant role in the Administration’s efforts to stabilize the housing market and the economy as a whole,” Deputy Secretary Wolin added.

The FTHB credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 tax return, due April 15, 2010, or their 2010 tax return, due April 15, 2011. First-time homebuyers who purchased a home in 2009 could claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010.