1st Time Homebuyers Tax Credit revised to help SF purchasers

The $8,000 credit was scheduled to expire on Dec. 1 2009 but will now be in effect through the end of June 2010. Homebuyers must sign a contract before April 30 and close by June 30, 2010. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate, which was previously mostly useless for San Francisco due to the previous income cap of $75,000 (which put most out of the running for a minimum SF purchase). However now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June.

Federal Housing Tax Credit [NAHB]