We in the housing industry are rejoicing is the passage of legislation to extend and expand home buyer tax credit. The current 2009 first-time home-buyer tax credit has been extended to April 30, 2010. It has also been expanded to include a far larger pool of people entering the dormant housing market, called the move-up market. This tax credit would include a $6,500 credit for people who have lived in their current residence at least five years.
A large percentage of the home buyers this year have been first-time home buyers taking advantage of the tax credit. Georgia's Senator Isakson has worked with Senate leadership over the last two weeks to expand the home buyer tax credit to include buyers in the "trade-in" or "move-up" market, because he believes the real housing recession is with homeowners who are delaying purchasing their next homes.
According to a recent telephone conference, Senator Isakson stated he has worked long and hard pushing for the tax credit for home buyers since January 2008 because he knows that it will work. Isakson states, "The key to returning stability to the economy lies within the housing market, and we have crafted a meaningful credit that will create a strong foundation for future growth and make a measurable difference over the next seven months in our economy." He also stated this is the last of the home-buyer tax credits, it will not be extended again.
Quoting Jim Abrams, AP, "The two tax credits, each costing more that $10 billion over 10 years, are paid for by delaying enactment of a law giving international companies more leeway in how they allocate interest expenses between U.S. and foreign sources in determining tax liabilities."
For a comparison chart on the two tax credits, go to http://bit.ly/e1fiE .
DON'T DELAY! TAKE FULL ADVANTAGE OF THESE TAX CREDITS BEFORE APRIL 30, 2010!!!! Interest rates are still low and properties are priced to sell. Local Monthly Market conditions are on youtube at http://youtube.com/CarolCan4u.