Tax credit expansion will continue to spur home sales and stabilize markets
WASHINGTON, DC – November 6, 2009 – (RealEstateRama) — Congressman Chandler voted in favor of extending and expanding the first-time homebuyer tax credit for an additional year, creating a new tax credit for current homeowners, and providing an additional extension for military families to purchase homes.
“So many benefit from this legislation—new homebuyers, people who have owned their home for years, our military families, our small businesses, and our economy,” Chandler said. “Over a million people have already taken advantage of this program to purchase their first home. It works, and it puts real money into the housing market and back in the pockets of Central Kentuckians.”
This provision, originally part of the American Recovery and Reinvestment Act, provides first-time homebuyers and those who have not owned a home in the last three years with an $8,000 tax credit for the purchase of a home. Over the past few months, the first-time homebuyer tax credit has been responsible for cutting the inventory of homes on the market and helping stabilize home prices.
Originally set to expire on November 30, 2009, the credit has been extended to homebuyers who sign a contract by April 30, 2010 and close on or before June 30, 2010. These tax credits will be further extended for members of the military serving outside the United States for at least 90 days. They can utilize the credit until June 30, 2011. An additional $6,500 tax credit will also be created for people who have owned their homes for more than five years.
Individuals taking advantage of this tax credit in 2010 would be able to claim it on their 2009 tax return. The income limits for this legislation were also revised, with the credit being phased out for buyers with yearly incomes above $125,000, or couples with incomes over $225,000.
Yesterday, the U.S. Senate passed this extension (98-0). Today it passed the House (403-12), and the president is expected to sign it into law tomorrow.
Contact: Jennifer Krimm (202) 225-4706