********* CORRECTION********* Read article at http://www.fairmark.com/news/08073001-homebuyer-credit.htm for more information on this credit....,.
Congress has passed the Housing and Economy Recovery Act of 2008 (HR3221) and President Bush has stated that he will sign. One element of this bill is a $7500 tax credit for all homes purchased between April 8, 2008 and June 30, 2009. The credit is spread over 15 years equaling $500 per year of tax credits (reduced taxes) per year.
This bill also approves long term increases in FHA loan limits, temporary VA loan limit increases and FHA foreclosure rescue programs for distressed home owners as well as reforms and programs to stabilize government backed loan programs.
This bill eliminates the ability for new buyers to purchase homes using sellers down payment assistance programs effective October 1, 2008.
You can read more details on this bill at http://www.realtoractioncenter.com/housing-bill-summary.html.
For those of you who have recently purchased a home or plan on purchasing one in the next year, congratulations. You not only are getting a home at a great price and lower tax base, but will receive a $500 credit for the next 15 years that you stay in the home.