$8,000 Credit for Home Buyer in New Stimulus Plan

Recent news reports that the initial review of the new stimulus plan has indeed cut out the proposed $15,000 tax credit for home buyers. But, apparently, there is a new proposal in the new stimulus plan for an $8,000 tax credit.

There aren't a lot of details as of yet, but this tax credit would be for first-time home buyers only (not any home buyer, as was with the $15K plan) and it would be an actual tax credit. In others words, it will not have to be repaid.

At this time, it's unclear exactly when the tax credit would take effect. It could be at the signing (and President Obama wants to sign by Monday at the latest), or as it's been rumored, it would count toward anything bought as of Jan. 1st, 2009. The tax credit would run until either July 31st or Aug 31st (again, details vary here). You'd have to purchase a home by that time in order to qualify.

There has been no word at this time whether or not this new credit, if passed, will cancel the previous $7,500 1st time home buyer tax incentive. The current $7,500 plan must be repaid over a period of years.

2/21/09 UPDATE: Here's a link to my newest post on the subject: $8,000 Home Buyer's Tax Credit: Things to Know