WASHINGTON, DC (February, 2009) -- President Barack Obama signed into law the American Recovery and Reinvestment Act ("ARRA"), a sweeping and strategic bill passed by Congress to create or save three to four million jobs, increase economic activity and provide more than $150 billion to low-income and vulnerable households. One of the most exciting provisions in the law is a new $8,000 tax credit for first time home buyers.

The tax credit is structured as follows:

* Available to first time home buyers only
* Limited to 10% of the purchase of the home or $8,000, whichever is less
* You must earn less than $75,000 per year as an individual, or $150,000 if married and filing jointly
* You must be buying a "main home" (i.e. a primary residence; no second homes or investment properties qualify)
* Applies to home purchases that take place between April 8, 2008 and
December 1, 2009

The ARRA $8,000 tax credit is a pure tax credit, requiring no repayment to the government.

Click here for IRS Form 5405, "First-Time Homebuyer Credit"