Matthew Hans Delaware Real Estate

Nov 5, 11:10 AM EST

Congress set to expand homebuyer tax credit

By STEPHEN OHLEMACHER
Associated Press Writer

WASHINGTON (AP) -- Buying a home is about to get cheaper for a whole new crop of homebuyers - $6,500 cheaper.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House is scheduled to vote on the bill Thursday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers - or anyone who hasn't owned a home in the last three years - would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

"We are still in a world of economic hurt, and Congress must continue to act boldly and creatively," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "With the right mix of tax breaks and investments we will get through this recession and get folks working again."

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

"For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home," Bond said. "And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place."

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break - for companies with revenues of $15 million or less - in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

"It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns," said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

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The bill is H.R. 3548.

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On the Net:

Congress: http://thomas.loc.gov

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City of Newark E-news: Important Community Meeting on November 16

Stormwater Utility Proposal Community Meeting

The City of Newark owns and maintains a complex stormwater system in the Christina River and White Clay Creek watersheds including 60 miles of sewers, 200 miles of curbs and gutter, 3000 catch basins, 36 stormwater management areas, and 500 floodplain acres along 10 stream miles. To fund stormwater, water quality, watershed, and floodplain programs, the City of Newark proposed 2010 budget recommends adopting a stormwater utility fee. Over 600 towns in the United States already have stormwater utilities including the college towns of Burlington, VT; Chapel Hill, NC; Palo Alto, CA, and Ft. Collins, CO.

The stormwater utility fee will affect residences, businesses, and nonprofits including schools and churches. There is a community meeting scheduled to better inform the community of what a stormwater utility is and what it means for the community. The meeting is scheduled for Monday, November 16^that 7:00 p.m. in the City Council Chamber located at 220 Elkton Road. For more information, please go to www.cityofnewarkde.us/publicworks/stormwaterutility.

Dana Johnston | Community Affairs Officer
City of Newark | 220 Elkton Road | Newark, DE 19711
tel 302 366 7020 | fax 302 366-7160

For the most up-to-date City information visit www.cityofnewarkde.us. This post was issued through Newark Enews.

Enjoy year round picturesque views from your custom Florida room overlooking the Delaware River and beyond. A nature lover's paradise this community is nestled along the Delaware River and yet is closer to everything than you imagine. Very relaxed atmosphere abounds for someone looking for a place to park their outdoor toys, including a wrap around driveway to the backyard. Make no mistake you will find the interior of the home very comfortable and has a great layout with 9 ft and vaulted ceilings and huge master suite and a great big partially finished walkout basement and lots of other great amenities. Some of the other amenities include potential fourth bedroom in lower level, a great office space for that home office we all want and need or how about the cozy loft overlooking the two story family room or the great big two car garage with work area. Bring your imagination, you could pay millions more elsewhere and still not have serenity of this home. Take a look a today and make it yours tomorrow.

The open house will be from 11 am till 1 pm on Sunday, November 1st. If you have financing questions, don't worry because we will have a lender available to answer any questions you may have.

See you there, we are doing another gas card give away so be prepared to win a door prize!

Don't think this beautiful home is the right one for you?

Start your new home search at www.delawarehousefinder.com

The Open House is scheduled from 11 am till 2 pm on Sunday Oct. 24th 2009! Don't miss this rare opportunity!

Tucked away among the tree-lined streets of River Woods is this beautiful end-unit townhouse. This home is surrounded by nature in a quiet cul-de-sac, yet close enough to the City, shopping and many of Wilmington's premiere attractions. Warm and inviting, the kitchen will entice even a novice to cook. The dining room has a picture window which allows plenty of light. Walk down to the living room where you can warm yourself by a roaring fire on colder days while gazing out at the backyard landscaping through the double glass doors. There are decks on each level so you can enjoy the outdoor beauty no matter whether in your bedroom or in the finished basement. Make yourself at home.

National Trails Day 2009 will be recognized on June 6, 2009, bringing together outdoor enthusiasts of all kinds to celebrate the great natural heritage of the United States trail system. Traditionally held each year on the first Saturday in June, National Trails Day was established to recognize the value of recreational trails and the people involved in building and maintaining them. Whether it's your local Park Service, the U.S. Forest Service, or a volunteer group trail preservation is necessary to keep City of Newark trails open to the public and available for years to come. Look for the City of Newark booth at Newark Nite for more information or give us a call at 366-7060.

This year join in the fun with a Parks scavenger hunt on National Trails Day.

Simply drop by the Parks & Recreation Department or visit the City web site on Friday, June 5 to get your list and turn them in at Newark Nite at the Parks and Recreation booth or email no later than 9:30pm on Saturday, June 6 to parksrec@newark.de.us.

Get out and enjoy all Delaware has to offer!

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