On July 30, 2008, President Bush signed the Housing Assistance Tax Act of 2008. One of the provisions in the Act gives qualified first-time homebuyers a tax credit of $7,500 or 10% of the purchase price of the home whichever is less. There is one caveat to the new provision. The tax credit is temporary and will be required to be paid back over 15 years. An additional warning related to the repayment, if the taxpayer sells the house or converts it to another use the credit becomes due on the return for the year either event takes place. This credit is available for home purchases made on or after April 9, 2008 and before July 1, 2009.
