Senate Approves $15,000 Tax Credit for Homebuyers
 The U.S. Senate voted February 4, 2009 to amend the 2008 American Housing Rescue and Foreclosure Act to include ALL new homebuyers and increase the $7,500 tax credit up to $15,000 or 10% of the purchase price for a qualifying residence.
The amendment will make this $15,000 tax credit on any primary residence available for one year after the bill is enacted. It also changes the $7,500 tax credit from the initial act to a true tax credit, not a zero interest loan that had to be repaid over 15 years. This $15,000 tax credit for new homebuyers could make an impact for anyone who is on the fence and considering buying a new home.
Only primary residences where the owner will live in the property is eligible. No investment properties qualify. This amendment applies to any home buyer and the taxpayer has a choice of splitting the credit equally across two years. The beginning effective date is the date of enactment of the legislation. I certainly hope soon.
If the bill passes both the House and Senate, and is signed into law by President Obama, the $15,000 tax credit for new home buyers includes:
- Anyone who buys a home in qualifies
- Take the $15,000 Tax Credit over 1 year or 2
- Doesn't have to be repaid
- $15,000 Tax Credit is the lesser of $15,000 or 10% of the purchase price of the home
Personally, I find it difficult to read and interpret House and Senate Bills. The current version of the American Recovery and Reinvestment Act of 2009 weighs in at 680 pages of legal speak. Click here to read it in all its glory here.
Charly Sanders, REALTOR®
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