The invaluable $5,000 D.C. Homebuyer Tax Credit and the Business Tax Credits expired on December 31, 2007, and was originally included in HR 6049, the Renewable Energy and Job Creation Act of 2008.  Although it passed the House on May 21st and the Senate on September 23rd, the tax credits were included in the Emergency Economic and Stabilization Act of 2008 and signed into law on Friday, October 3, 2008.  These tax credits have been highly rewarding for DC home and business owners, and are retroactive for 2008 and good through 2009.  Current and potential business owners swarmed Norton's Annual Small Business Fair on Tuesday, April 8, 2008 at the Washington Convention Center. See more details on the Norton Homebuyer Tax Credit below.

Call 225-8050 for general information about Business Tax Credits. For information about business qualifications, click here for the D.C. Office of Planning and Economic Development or call 727-6365. Click here to see Congresswoman Norton's press release on the passage of HR 6049, the Renewable Energy and Job Creation Act of 2008.  You can also access the press release on the DC Tax Incentives Improvement Act of 2006, seeking an increase in the tax credits. 

Q & A on the $5,000 D.C. Homebuyer Tax Credit

1. Does it matter how much money I make?
   Eligibility for the credit is phased out for single filers making $70,000 to $90,000 (adjusted gross income) and joint filers making $110,000 to $130,000. For example, single filers making $70,000 (or joint filers making $110,000) would receive the entire credit; single filers making $80,000 (or joint filers making $120,000) would receive a $2,500 credit; single filers making $90,000 (or joint filers making $130,000) would not receive the credit.
   
   
2. What if I have already owned a home in the suburbs or in the District?
   Those who have owned a principal residence before in the suburbs or in the District are still eligible as long as they have not owned a home in the District of Columbia during the year preceding the new purchase.
   
   
3. When do I get the $5,000?
   First-time homebuyers will claim the $5,000 against federal income taxes they will file by April 15. If those taxes are less than $5,000, the remainder of the credit can be carried over and applied against the next year's taxes.
   
   
4. Must the home bought with the credit be my primary residence?
   Yes. This home must not be an investment property.
   
   
5. How do I get the proper IRS form I need to file for the tax credit?
   Call the IRS at 1-800-TAX -FORM to get your copy of the tax form for the $5,000

D.C. homebuyer tax credit. Ask for Form 8859 "DC Homebuyer" or download it from the IRS website at http://www.irs.gov