First Time Homebuyer Credit Increased to $8,000 in Final Federal Stimulus Bill

According to media reports, the "American Recovery and Reinvestment Act of 2009" modified the first-time homebuyer income tax credit by increasing it from $7,500 to a maximum of $8,000 and eliminating repayment requirements unless the home is sold within three years of purchase. The tax credit applies to homes purchased on or after January 1, 2009 and before December 1, 2009. The full amount of the credit is available to individuals whose adjusted gross income does not exceed $75,000 ($150,000 on joint returns) and who have not owned a principal residence within three years of purchase. The credit reduces or eliminates income tax liability for the year of purchase and any unused amount of the tax credit is refundable to purchaser.