First time homebuyers received an early Christmas gift from Uncle Sam last week and Clayton County residents turned out last Saturday at Clayton State University to hear the good news.

Representatives of the Internal Revenue Service and the Federal Housing Administration conducted an information program at the CSU Student Activities Center to give residents details of the Congressional approval earlier this month of the Mortgage Modification Conversion Program, authored by U.S. Sen. Johnny Isakson, R-Ga.

This program extends first-time homebuyer tax credit five months while expanding the eligibility requirements for those seeking the tax credit.

Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homeowner who purchases a home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less.

Marian Lee of the IRS, who addressed the gathering at CSU, said perhaps the best news about this tax credit is it is one which would not have to be paid back to the government.

“This is great news,” said Natasha Meadows who attended the meeting. “It gives you even more of an incentive to buy a home now.”

Home purchases must be made within one year of the legislation’s enactment

The amendment would allow taxpayers to claim the credit even on their 2008 income tax return. The amendment would also replace the $7,500 housing tax credit.

“I am honored to be able to offer this excellent opportunity to first time homebuyers from across Georgia,” Isakson said. “Information is power in home buying and negotiating and this new tax credit information is vital.”

Ms. Lee told the small but enthusiastic crowd that this tax credit also extends the deadline for qualifying home purchases from last Nov. 30 to April 30 of next year.

The maximum credit amount remains at $8,000 for a first-time homebuyer upon qualifying and $6,500 for a homeowner moving out of one primary residence and into another.

Ms. Lee said to qualify for the tax credit, a buyer must have owned and used the same home as their principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new primary residence home.

“For all qualifying purchases in 2010, taxpayers have the option of claiming this credit on either their 2009 or 2010 tax returns,” Ms Lee said.

Donald Fairnot, who represented the FHA at the CSU meeting, said the governmental organization has “a myriad of programs for first time home buyers.”