News on the homebuyer tax credit.the House of Representatives has
approved legislation that would extend and expand the credit. The
House vote comes after the Senate voted yes on Monday night, and while there is more work to be done, word has it that an agreed upon bill should reach President Obama for his signature by the end of this
week.
Under the proposal, individuals with income up to $125,000 a year and
couples earning up to $225,000 would be eligible for the credit. The
extension would cover homes under contract by April 30th and closed by June 30th, 2010. And as we had also predicted, the tax credit will be expanded to non-first time homebuyers as well. There are a few tweaks for non-first time homebuyers – the credit is reduced from $8000 to $6500, and they must have owned a home for at least five of the past eight years. Remember – this is NOT final, and even if it is
approved, it could contain further changes.