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

• January 9, 2013

by Shilpi Paul

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