More Detail on the Extended and Amended Tax Credit Bill

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill has kept the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order. The purchase price of the home is capped at $800,000.
Nationwide, more than 1.4 million first-time home buyers were given the opportunity to become homeowners as a result of the tax credit. According to California Association of Realtors' research, nearly 40 percent of first-time home buyers surveyed said they would not have purchased a home without the federal tax credit, and approximately 70 percent said the tax credit was "the most important" or a "very important" factor in their decision to buy a home.