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Clock is ticking on homebuyer tax credit

The National Association of Home Builders (NAHB) is urging first-time homebuyers who want to build a new home and also take advantage of the $8,000 first-time home buyer tax credit to act immediately.

"We have received many inquiries from potential home buyers asking if a sales contract on a new home by the November 30 deadline will be sufficient to receive the first-time home buyer tax credit," said Joe Robson, chairman of the NAHB and a home builder from Tulsa, Okla. "They have been surprised to find out that they must move into the new home before they are qualified."

Homebuyers may qualify for the tax credit if they purchase the home on or after Jan. 1 but before Dec. 1, 2009.

In the case of new construction, the date the homebuyer takes occupancy of the house is considered the purchase date, not when the sales contract is signed.

In addition to the November 30 deadline, home buyers must also have not owned a home in the three years prior to the purchase and have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers or $170,000 for married filers in order to qualify for the tax credit.

More information on the first-time homebuyer tax credit can be found at