Housing Assistance: An Inventory of Fiscal Year 2010 Programs, Tax Expenditures, and Other Activities
U.S. Government Accountability Office
First-time homebuyer tax credit
Administering Agency/Entity | Internal Revenue Service |
Short Description | Allowed taxpayers to claim a credit when purchasing a home, subject to varying rules. The maximum value of the credit ranged from $6,500 to $8,000. The 2008 Housing and Economic Recovery Act version of the credit was equal to 10 percent of the home’s purchase price up to $7,500, and it had to be repaid over 15 years. The 2009 American Recovery and Reinvestment Act version increased the maximum credit to $8,000 and made the credit subject to repayment only if the home was sold or ceased to be a primary residence within 3 years. The 2009 Worker, Homeownership, and Business Assistance Act included several modifications such as allowing certain long-term homeowners purchasing new homes to claim a credit up to $6,500. Taxpayers with higher incomes were subject to limitations on their use of the credit. This provision expired April 30, 2010. |
Primary Purpose | Emergency assistance to housing market or current homeowner |
Type of Housing Supported | Homeownership |
Type of Assistance | Tax credit |
Estimated Revenue Loss1 | $13,680,000,000; revenue losses were estimated by Treasury for fiscal year 2010. This provision expired April 30, 2010. |