US Senate to vote for extention of 8K Tax Credit today

The United States Senate is expected to vote later today, on a bill to extend Unemployment Insurance benefits. This bill will contain the “Dodd – Lieberman – Isakson Amendment to Extend and Expand the $8,000 First Time Homebuyer Tax Credit.”

The Extended and Expanded Tax Credit will make the current tax credit bigger and better, and if passed will contain the following provisions:

Amount:    $8,000

Eligibility:     ALL HOME BUYERS (Step-up buyers will have to have lived in their current home for seven years to be eligible)

Income Limits:     $125,000 for single filers/$225,000 for joint filers

Time Frame:      December 1, 2009 to April 30, 2010 plus 60 Day extension if binding contract is in  place by April 30, 2010

*The 7 year ownership requirement is designed to lower the “score” or cost of the tax credit.  This is still open to change.  The Congressional Budget Office is going to “score” the cost of 3 year and 5 year requirements. We are continuing to push for step-up buyers to be required be in their current home for three year period.

The National Association of Realtors (NAR) will be monitoring the progress and any potential changes to the bill. NAR will send out a notice when the legislation is voted on tonight–regardless of how late into the night or early into the morning the debate continues and the Condo Metropolis Blog will be updated as soon as confirmation (or otherwise) is received.

1 Comment

  1. Here is the latest on the $8,000 tax credit courtesy of Linda Goold, NARs tax counsel.

    The Extended and Expanded Tax Credit agreement includes the following provisions:

    Amount: $8,000

    Who: First-time homebuyers — same definition as current law

    Amount: $6500

    Who: Repeat purchasers. Have used previous home as principal residence 5 of the 8 previous years.

    Income Limits: $125,000 for single filers/$225,000 for joint filers. Same for first-time & repeat/move-up buyers

    Limitation on cost purchased home: $800,000

    Time Frame: December 1, 2009 to April 30, 2010 plus 60 Day extension if binding contract is in place by April 30, 2010

    Anti-fraud measures have been added.

    NAR will be monitoring the progress and any potential changes to the bill. NAR will send out a notice when a vote has occurred. There has not been a final vote as of yet.

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