President Signs Homebuyer Tax Credit Extension and Expansion Bill
Today, President Barack Obama signed a $24 billion economic stimulus bill into law which would both extend and expand the Homebuyer Tax Credit which was due to expire on November 30 until April of 2010. The bill-signing came just one day after the House passed the bill with a 403-12 vote. The Senate approved the bill unanimously on Wednesday.
“This extension and expansion of the homebuyer tax credit is even better the second time around,” said Maxine Goodhue, President of GMNBR. “It will allow for even more families to take advantage of the low interest rates and affordable prices. More importantly it is an incentive for people to invest in their future through homeownership.”
In detail, the bill will extend the present $8,000 tax credit for first-time home buyers through April 30, 2010. In addition, current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.
Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
“The passage of this bill crucial in helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our state and the nation,” Goodhue said. “It is now time for our members to get out there and spread the word by telling your buyers and sellers of the extraordinary opportunity available to them.”
It is estimated by NAR economist that the current tax credit has contributed to approximately $22 billion to the general economy, and approximately 2 million people will take advantage of the tax credit this year.
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Today, President Barack Obama signed a $24 billion economic stimulus bill into law which would both extend and expand the Homebuyer Tax Credit which was due to expire on November 30 until April of 2010. The bill-signing came just one day after the House passed the bill with a 403-12 vote. The Senate approved the bill unanimously on Wednesday.
“This extension and expansion of the homebuyer tax credit is even better the second time around,” said Maxine Goodhue, President of GMNBR. “It will allow for even more families to take advantage of the low interest rates and affordable prices. More importantly it is an incentive for people to invest in their future through homeownership.”
In detail, the bill will extend the present $8,000 tax credit for first-time home buyers through April 30, 2010. In addition, current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.
Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
“The passage of this bill crucial in helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our state and the nation,” Goodhue said. “It is now time for our members to get out there and spread the word by telling your buyers and sellers of the extraordinary opportunity available to them.”
It is estimated by NAR economist that the current tax credit has contributed to approximately $22 billion to the general economy, and approximately 2 million people will take advantage of the tax credit this year.
The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Innovative Realty Corporate Office: 66 Gilcreast Road, Londonderry, NH 03053
P: 603.434.4101 | Toll Free: 800.746.8448 | F: 603.434.7342 | New Homes: 603.425.2300
