New, temporary, tax credit for first-time home-buyers. Its key features are:
A $7,500 Tax credit for quallifying first-time homebuyers. The tax credit is actually equal to 10% of the purchase price of the home, but not more than $7,500. Whereas virtually all houses in this area are priced higher than $75,000, the tax credit is most likely going to be $7,500.
The tax credit is Time limited. It expires on July 1, 2009. It is a Tax Credit, not an itemized deduction. This means that if you would otherwise be receiving a $1,000 tax refund, your tax refund with the new tax credit would increase to $8,500.
A first time homebuyer is someone who has not owned a principal residence during the three years prior to the purchase closing date.