Is DC’s $5,000 First-Time Buyer Tax Credit Coming Back?

January 9, 2013
6 Comments

For a few years, homebuyers making their first home purchase in the District were able to take advantage of a $5,000 tax credit. The credit expired in December 2011 and, despite negotiations during the “fiscal cliff” dealings, it has not been re-instated.

However, first-timers can still hold out hope. Congresswoman Eleanor Holmes Norton is working towards getting the credit re-instated, her press secretary Scott McCrary told UrbanTurf. While there is no timeline in place, the Congresswoman’s intention should be hopeful to future buyers.

There is a precedent for a retroactive credit as well; the tax credit expired before in 2009, but when it was included as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, first-timers who purchased earlier in 2010 were eligible to take advantage.

Previously, the $5,000 credit was available to buyers purchasing their first home in the District, with some income restrictions in place: the full credit was available to those making $70,000/year or less, a partial credit to those making between $70,000 and $90,000, and no credit to those making above $90,000.

This article originally published at http://dc.urbanturf.com/articles/blog/is_dcs_5000_first-time_buyer_tax_credit_coming_back/6496

6 Comments

jag said at 4:35 pm on Wednesday January 9, 2013:
What an utter waste of money. Just about every city in this country needs this subsidy help more than DC does.

H Street LL said at 5:55 pm on Wednesday January 9, 2013:
@Jag - agreed 100%

Ryan said at 6:26 pm on Wednesday January 9, 2013:
While I benefited from this tax credit, it’s time to let it expire. I think it was extremely helpful 10+ years ago to motivate young professionals to move back into the District. Now, it’s outlived its necessity.

BG said at 4:30 am on Thursday January 10, 2013:
Keep it! Besides, if we are going to let the $5k tax credit expire, can we also get rid of the DC 1% real estate transaction tax? Plus, I suspect most of the people buying homes in DC don’t have kids at this time and probably use less city services than a “normal” resident - why shouldn’t these folks get some kind of tax benefit? Plus, this tax credit will also help DC in the sense the most homeowners will probably use the money to do home improvement projects - I’m sure DC general contractors want to keep that stream of business growing.

Nat said at 12:36 pm on Thursday January 10, 2013:
I would LOVE for them to bring this back. I’m close to having a down payment for a small place ready and a $5000 credit would mean I don’t need to save as much for a “buffer” for my first year of taxes and unexpected costs. This credit is designed to get new homeowners to stop renting and put down some roots—and it would mean getting this renter out of an $1800/mo studio and into a small condo, where I could hire a DC contractor, buy materials from DC stores, start getting involved in my neighborhood, and create my first real DC home.

The Other Jason said at 2:58 pm on Monday January 28, 2013:
Are you kidding me??? Other cities need it more than DC? Why? What other citizens are more deserving of a first-time homebuyers tax credit than those in D.C.? I am a single person who just spent more than $300,000 on a friggin’ one bedroom condo. I absolutely “need” a tax credit as much as someone who just bought a home in Ohio or New Mexico or wherever.

Many, many states offer their own tax credit to first time home buyers. Unfortunately DC is not a state and cannot offer this…so it’s part of the larger Fed Gov budget. Citizens in DC should have similar rights and opportunities as those in other states.

And if you’re going to complain that the Fed Gov’t shouldn’t be offering this tax credit to DC residents, then how’d you feel when it offered the entire country an $8,000 tax credit 3 (or was it 4) years ago?

Don’t be a d!ck. First-time homebuyers in DC need a tax credit as much as citizens do in other states!