Congressional Compromise Gives Tax Credit to First-time Home Buyers

First-time home buyers will receive up to an $8,000 tax credit if a home is purchased by the end of August 2009. The credit was the result of a compromise reached during the congressional conference committee's work to settle differences between each chamber's version of the economic stimulus package.
As the economic stimulus package made its way through Congress, a couple of variants of the home buyer tax credit were passed. The House had limited the scope and amount of credit far more than the Senate version of the Bill. The House version would have granted up to a $7,500 tax credit for first time buyers (or someone who has not owned a home for more than three years).

The Senate offered a broader tax incentive. Its version had a $15,000 tax credit for all home buyers purchasing a primary residence.

The $8,000 credit that came out of the conference committee raises the existing credit by $500.