With help still needed to heat up home sales, the $15,000 tax credit is once again under the microscope. If successful, the credit would be extended to ALL homebuyers, not just first-time homebuyers. In addition, there would be no income limit. Regardless of income, the credit could be claimed.
The goal is to both drive purchases by first-time homebuyers and induce current homeowners to make move-up purchases, including multi-family units.
The bill was introduced on June 10, 2009 by Senator Johnny Isakson, a Georgia Republican. Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, has co-sponsored the bill.
The bill would extend the tax credit, which now applies to homes purchased from Jan. 1 to Dec. 1, 2009, to one year after the new measure is signed into law. It would also let borrowers divide the credit over a 2 year period. The legislation would not be applied retroactively to purchases completed before the date of enactment. The tax credit would not have to be paid back and the property would have to remain the primary residence for at least 2 years.
If it passes, this will be a huge boom for housing and the economy.
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