We have read the news this week about the new housing bill passed by Congress and signed by President Bush.  One of the provisions that is getting publicized is the $7500 tax credit for first time buyers.  Here is some info I was able to gather about it:  It is for homes purchased between April 9, 2008 and July 1, 2009.  It is limited to 10% of the purchase price or $7500.  It is a credit not a deduction, meaning that if you owe $7500 next year in taxes, that because of this credit you will owe no taxes for next year.  It also must be repaid at $500 per year for 15 years or when the house gets sold.  So basically it's a zero interest loan for 15 years.  Basically this is a good tool to promote home ownership as well as reduce this year's tax liabilities as the economy isn't doing all that great.