In service to our clients and partners in the real estate industry, NDG Communications often shares important news and research on our blog. Today the United States Senate announced that the homebuyer tax credit will be extended and expanded, and we present this exciting news here to keep you abreast of the facts as they develop.
Senate Acts to Extend Aid to Homebuyers; Passed $6,500 Tax Break; Headed for Quick Vote in House
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers—or anyone who hasn’t owned a home in the last three years—would still get up to $8,000.
To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30. The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
The bill is HR. 3548. “This is probably the last extension,” said Senator Johnny Isakson of Georgia, a former real estate executive who championed the credits. The new $6,500 credit for existing homeowners “is going to help us boost what is the problem in the U.S. housing market today and that is what is called the move-up market,” said Senator Isakson.
The credit is available for homes purchased at under $800,000. [The bill] doubles the income ceiling for qualification to $125,000 for individuals. The credit would be phased out for joint filers with incomes above $225,000.
The measure also strengthens the ability of the IRS to stop people who are not eligible for the program from filing fraudulent claims.
“Buyers right now have an incentive to hold off, not knowing whether the credit will be extended,” said Lucien Salvant, spokesman for the National Association of Realtors.
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
ALL MATERIAL HERE EXCERPTED AND ADAPTED FROM ARTICLES by STEPHEN OHLEMACHER, Associated Press Writer, 8:53 a.m. EST, November 5, 2009, and by JIM ABRAMS, Associated Press Writer, 1:20 a.m. EST, November 5, 2009.
