Friday October 30, 2009
Now is the time to act on the new home tax credit. With the latest provisions that are looking like they are going to pass, a new home credit will be available to all buyers not just first time home buyers. Take a look at the info from the New Home Builder’s Association:
Dear NAHB Executive Board Member and Executive Officer,
I am writing to update you on the status of NAHB’s efforts to secure an extension of the first-time homebuyer tax credit (tax credit) and five-year carryback of Net Operating Losses (NOLs) established under the American Recovery and Reinvestment Act of 2009.
This week the Senate began its consideration of legislation to extend additional unemployment insurance benefits to unemployed Americans. Because of the work of NAHB, members of the Association from around the country and a number of our allies in the Senate, proposals to extend and expand the homebuyer tax credit and expand the NOL carry back are included in that legislation.
These proposals are the result of bipartisan efforts of Senate Finance Committee Chairman Max Baucus (D-MT) and Senators Johnny Isakson (R-GA), Chris Dodd (D-CT), Olympia Snowe (R-ME), Lamar Alexander (R-TN) and Joe Lieberman (I-CT), and Senate Leaders Harry Reid (D-NV) and Mitch McConnell (R-KY). Without their support and persistent advocacy in the Senate, we would not have been able to achieve this result.
Also, today, the Obama Administration, through a joint statement issued by Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan, said, “We welcome efforts taken by Congress to extend the First Time Homebuyers Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide.”
Here are the specifics of the proposals as we know them:
Homebuyer Tax Credit
· Extends the $8,000 tax credit until April 30th for first-time homebuyers;
· Creates a new $6,500 tax credit for move-up buyers for the same period;
· Both categories of homebuyers have an additional 60 days (June 30th) to close on the home;
· Both categories of homebuyers have new, higher income limits of $125,000 for individuals and $225,000 for couples;
· Move-up buyers must have been residing in their primary residence for 5 consecutive years out of the last 8 in order to qualify for the credit; and
· Homes over the purchase price of $800,000 do not qualify.
Please note if this passes as proposed below our buyers will have the opportunity to participate, but the time for build jobs will be tight
Since the home will need to be closed by June 30 we would need to start any build job by Jan 1 or sooner.
The new proposal needs to pass so all home buyers can benefit and help improve the conditions of our economy. Please pass this on as it will make a big impact in any economic recovery to come.