If you're a first time homebuyer and you thought that you might be out of time when it came to getting the $8000 refundable tax credit, think again! On Friday the Obama administration signed into law the Worker, Homeownership, and Business Assistance Act of 2009 which extends the $8000 refundable tax credit through the end of June of 2010. If you had given up looking for a house, it may be time to restart your search!
$8000 First Time Home-buyer Tax Credit Extended
The new law was agreed upon by Congress last week, and then signed into law by President Obama at the end of the week. The extension of the tax credit does mean that there are a few changes in the provisions, including higher income limits, age restrictions and limits on home values.
- The credit is available for homes that go under contract by April 30, 2010 and close by
June 30, 2010September 30th, 2010.
- First-time buyers (those who have not owned a home for three years) can continue to claim an $8,000 credit.
- Income limits: $125,000 a year for individuals, $225,000 a year for married couples. (an increase in income limits)
- Homes that cost more than $800,000 aren’t eligible for the credit.
- You must be 18 years old to claim the credit.
- Credit is available for primary residences only (no vacation homes)
$6500 Move-Up Homebuyer Tax Credit Passed
In addition to the first time homebuyer bill being extended, Congress also decided to expand the incentives for homebuyers by allowing some current owners to take part as well. Current homeowners can now buy a new home and receive a $6500 tax credit. Details of the new incentives here: $6500 homebuyer tax credit.
What do you think of the tax credit being extended? Are you relieved because you just missed the deadline before? Are you upset because you're against the credits? Tell us your thoughts on the tax credit extension and expansion in the comments below.