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Tax Credit Incents Home Purchase
Release Date:February 17th, 2009
Fort Collins, CO, February 17, 2009- In Denver earlier today, President Obama signed into law the American Recovery & Reinvestment Act of 2009, the much anticipated federal economic stimulus bill.  Within the massive legislation, several provisions specifically impact the housing industry through expansion of federal programs and inclusion of incentives intended to stimulate private investment.
 
Of significant impact to populations served by Funding Partners, the Homeownership Tax Credit has been extended and modified from the credit first introduced under the Housing and Economic Recovery Act of 2008.  Under the revised program, first time homebuyers (defined as any buyer that has not owned a primary residence within the past three years) may claim a credit equal to 10% of the purchase price, or $8,000, whichever is less.   
 
Important provisions of the new program include:
 
  • The credit applies to home purchases between January 1, 2009 and November 30, 2009.
  • The credit may be claimed on the 2008 personal tax return if the purchase occurs prior to filing deadline or on the 2009 personal tax return if the purchase occurs later.  Tax filers may also amend their 2008 return if a qualifying purchase has occurred and not included in previously filed return.
  • As a credit, the program offers a direct reduction of the federal tax obligation and may be refundable if the credit exceeds the federal tax due from the filer.  The credit is in addition to standard tax deductions associated with real estate ownership – property taxes, mortgage interest, etc.
  • The credit is recaptured in full should the buyer sell, transfer or fail to occupy the home as a primary residence within three years of the purchase.  The previous version of the credit which mandated 15 year repayment on subsequent tax returns has been repealed.   
  • The credit phases out for individual tax filers with modified adjusted gross incomes between $75,000 and $95,000 ($150,000 and $170,000 for joint filers).
  • The credit may be used in conjunction with tax-free mortgage revenue bond (MRB) programs such as those offered through Colorado Housing & Finance Authority, the Metro Mayors Caucus and the City of Colorado Springs/El Paso County.
 
 
 
To read the full text of the legislation that impacts taxes and fiscal relief (Part B), please visit: http://www.thomas.gov/home/h1/Recovery_Bill_Div_B.pdf
 
 
For further information regarding Funding Partners’ loan programs, please visit www.fundingpartners.org
Contact Information:
Megan Gifford
Marketing & Communications Coordinator
Funding Partners for Housing Solutions
214 S. College Ave, Second Floor
Fort Collins, Colorado 80524