Home Buyer Tax Credit extended
President Obama recently signed a new law that extends the temporary Home Buyer Tax credit until next Spring. Most economists and Washington watchers agree that once this extension of the credit expires that it will not be extended for an additional term. This means that home buyers must have a contract in place before May 1, 2010 and any home purchase must close before July 1, 2010.
Many of the main provisions of the credit have remained the same such as first time home buyers still get a credit of up to 10% of a home’s purchase price up to a maximum of $8,000 and all taxpayers must use the home as a principal residence for the next three consecutive years.
The provisions in the new law which went in to affect on November 6th include a cap on the price of any home purchased of $800,000. There is also now a tax credit for homeowners who have previously owned a home and who have lived in one residence for five consecutive years of the past eight years. These existing homeowners can now qualify for a tax credit for up to 10% of the purchase price with a maximum credit available of $6,500 for a new principal residence. Any new home purchased does not have to cost more than the old one. Income limits are more generous under this new tax credit extension thus opening the credit up to a wider swath of people.
The real estate and building industry was quite happy over the news and the credit should continue to provide a much needed spark to housing sales across the country. As a company who earns it’s living from the housing market and who feeds our families from homeowners who enjoy our products, we applaud the decision and we hope the housing market responds in positive ways to this gift for housing workers nationwide.
