Homebuyer tax credit offers unique benefit to military members Published April 6, 2010 By 4th Fighter Wing Legal Office SEYMOUR JOHNSON AIR FORCE BASE, N.C. -- Congress has approved special first-time homebuyer benefits for servicemembers providing an exemption from the repayment of the first-time homebuyer credit for military members required to move by military order. Since February 2009, any first-time homebuyer has been eligible for up to an $8,000 tax credit. Originally, this credit required repayment if the buyer did not stay in the house for three years. This provision effectively eliminated the tax credit for many military families because of their frequent moves. The special exemption for servicemembers fixes this issue. Now, a military member who receives permanent-change-of-station orders at least 50 miles from their house will not have to repay the credit when they have to sell or rent their property. Another special benefit for servicemembers is that Congress also extended the deadline for purchasing a home. Civilian homebuyers must establish a purchase contract by April 30 and close on the house by June 30. However, servicemembers stationed overseas for at least 90 days between Dec. 31, 2008 and May 1, 2010, have an additional year to qualify for the credit. For qualifying purchases made in 2010, taxpayers have the option to claim the credit on either their 2009 or 2010 return. For questions on qualifying purchase plans or to schedule an appointment for legal assistance, call the Seymour Johnson AFB legal office at 722-5322. For more information on the Homebuyer Tax Credit, visit www.irs.gov and search "First-Time Homebuyer Credit."