Homebuyer Tax Credit Expansion Passed By Congress

The $8,000 homebuyer tax credit for first-time buyers, due to expire at the end of November, will be extended through April 30 of 2010 and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

This new law will make buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

Debate on the homebuyer credit was mostly positive and the legislation passed 403 to 12. The legislation is scheduled to take effect December 1st and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

It is expected that the President will sign the legislative package, which contains an expansion of unemployment benefits as well as the tax changes.

If you have any questions on this new law, please stay tuned for additional information or send us an e-mail.

Rick Frissell~ Florida’s Beautiful Homes- Realtors®

813-340-6828

Rick Frissell is a Tampa Bay Area Realtor, Author and Consultant. Rick loves to bike and walk his Golden Retriever pup in the Brandon, FL area. He has worked with Tampa Bay Area real estate for almost a decade. His website has a free MLS search for Tampa Bay Area homes along with Brandon Florida's Beautiful Homes Blog that allows readers gain insight into the Tampa Bay Area real estate market.