Here are the income limits to qualify for the first time homeowners tax credit. The buyer,(and if married, the spouse) cannot have owned a principal residence during the three year period prior to the purchase date. In general, the credit is available only if the homebuyers adjusted gross income does not exceed $75,000($150,000 if a joint return is filed).

If one claims the $7,500 credit it will have to be paid back as an extra amount on the federal tax returns at the rate of $500 per year, beginning with the tax return for the second year after the new home is purchased.

For more details and examples of how the new law works, visit the Web site of Congress's Joint Committee on Taxation at www.jct.gov and look for publication JCX-63-08 on the home page. For additional informationon tax breaks from the Internal Revenue Service, see Publication 530 at irs.gov