Tax Credit for First-Time Homebuyers
Data File:
Date:
July 23, 2008
Who:
IRS
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Housing
Action Type:
Tax Break
Maximum Amount:
$4.65 billion
Amount Spent:
$4.65 billion
Deficit Impact:
$4.65 billion This measure provides a $7,500 tax credit for some qualifying first-time homebuyers. The credit will be claimed on tax returns to reduce the home-purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
The measure was passed as part of the Housing and Economic Recovery Act of 2008, along with an increase in the low-income housing tax credit, community housing grants, and the HOPE for Homeowners Program.
See the extension of the homebuyer tax credit in the American Recovery and Reinvestment Act and again in the Worker, Homeownership, and Business Assistance Act of 2009.
Notes:
Maximum amount reflects the peak cumulative cost of the provision over the 2008-2018 period. Amount spent and deficit impact reflect CBO's estimated ten-year budget impact of the provision (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).