first-time homebuyer tax credit

Definition

A federal tax allowance that permitted specific home buyers to claim part of the purchase price as a deduction. The initial version of the credit allowed up to $7,500 or 10% of the purchase price and required repayment over the first 15 years of occupation. An expanded version, enacted as a response to the housing crisis of 2008, allowed purchasers to claim up to $8,000 and did not require repayment.
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first-round financing fiscal