"First Time" DC Homebuyer Tax Credit renewed

This was sent today from my managing Broker:

The renewal of the $5,000.00 first time D.C. home buyer (i.e., purchaser has not owned a principal residence in D.C. within 1 year of the date of settlement) was included in the Emergency Economic Stabilization Act of 2008, which the United States Congress passed on Friday, October 3, 2008 and was signed by President Bush the same day. The tax credit is retroactive to December 31, 2007 and will be good through December 31, 2009. Individuals and families buying a home in the District for the first time are eligible even if they have owned elsewhere but not in the city. Unlike the $7,500.00 tax “credit” that was made part of the Housing & Economic Recovery Act of 2008 the tax payer does not have to repay any of the $5,000.00 D.C. credit. Note, however, that you cannot utilize both credits, so I would favor the D.C. credit since the taxpayer does not have to repay it, even though it is a lower amount (check with your accountant of course). The credit is applied against the taxpayer’s total Federal income tax liability at the end of the year—not a credit of any sort at the time of settlement. It is subject to income limitations and your clients should consult their tax professionals for advice.