Extended and Expanded Home Buyer Tax Credit

NAR Issue Brief
Homebuyer Tax Credit Changes
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled
“December 1 – April 30, 2010” become effective when President Obama signs the bill. All changes made
to the current credit become effective on that date, as well.
FEATURE Jan 1 – November 30, 2009
Rules as enacted
February 2009
December 1 – April 30,
2010 Rules as enacted
November 2009
Buyer –
Amount of Credit
($4000 married
filing separate)
($4000 married
filing separate)
Buyer –
Definition for Eligibility
May not have had an interest
in a principal residence for 3
years prior to purchase
Current Homeowner –
Amount of Credit
No Provision $6500
($3250 married
filing separate)
Effective Date –
Current Owner
No Provision
Date of Enactment
Current Homeowner –
Definition for Eligibility
No Provision Must have used the home
sold or being sold as a
principal residence
consecutively for 5 of the
previous 8 years
Termination of Credit Purchases after
November 30, 2009.
(Becomes April 30, 2010 on
Date of Enactment.)
Purchases after
April 30, 2010
Binding Contract Rule None So long as a written binding
contract to purchase is in
effect on April 30, 2010, the
purchaser will have until
July 1, 2010 to close.
Income Limits
(Note: Increased income
limits are effective as of
date of enactment of bill)
$75,000 – single
$150,000 – married
Additional $20,000 phase out
$125,000 – single
$225,000 – married
Additional $20,000 phase
Limitation on Cost of
Purchased Home
None $800,000
Effective Date of Enactment
Purchase by a Dependent No Provision Ineligible
Effective Date of Enactment
Rule None Purchaser must attach
documentation of purchase
to tax return