Springfield Missouri Real Estate News - Tax Credit Could Be Increased and Extended to Almost All Homebuyers

Congress is considering proposals to greatly expand the soon-to-expire $8,000 tax credit for first-time home buyers - potentially applying it to almost all home buyers. Supporters say doing so would further boost home sales, stabilize housing prices and generate jobs. The credit now can be claimed by anyone buying a home who has not owned one for three years and who closes the deal by Nov. 30.

Beyond extending that deadline, some lawmakers want to make the credit available to all homebuyers who meet income eligibility requirements. And some want to increase the amount of the credit from $8,000 to $15,000. Currently the first-time home buyer credit is available in full to those buying their primary residence who make $75,000 or less ($150,000 for joint filers). A partial credit is available to those making between $75,000 and $95,000 ($150,000 to $170,000 for joint filers).

By the end of November, the credit will have been used by 1.8 million home buyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.