Possible Extension/Expansion of Homebuyer Tax Credit?
The $8000 First Time Home Buyer Tax Credit offer is due to expire on December 1, 2009 and to qualify, your home purchase must close on or before November 30th. So if you are a first time home buyer, GET ON THIS ASAP. If, however, you absolutely positively, will not be ready to buy a home by November, then there is still hope out there. There are currently five, count em FIVE, bills on the table in Washington that propose to extend and tweak the current tax credit bill.
The most publicized proposal, has been introduced by Johnny Isakson (R-GA) who is responsible for getting the current tax credit bill passed. This new bill, The Home Buyer Tax Credit Act of 2009, proposes a non-refundable tax credit up to $15,000 for ALL primary residence purchases-not just by first time home buyers. The bill would also remove income limits that had prevented individuals making more than $75,000 a year from claiming the credit. This bill would expire one year after it was enacted.
According to Luke Mullins of USNews.com, Isakson argues that the current tax incentive is insufficient because it misses a second set of buyers who are essential to a housing recovery. “We don’t have a recession in first time home-buyers,” a statement from the senator said. “We have a recession in the move-up market.” The legislation aims to convince these “move-up” buyers that, despite falling real estate prices and mounting job losses, now is the time to buy that larger house.
The second bill floating around the capital, introduced by one Kenny Marchant (R-TX) proposes to extend the existing $8000 tax credit to June 2010 and expand it to all primary resident home buyers. It also adds provisions for a tax credit of up to $3,000 for homeowners who refinance.
The other three bills are all virtually identical to each other, each one proposing an extension of the $8000 tax credit to June 2010 and expanding it to all primary resident homebuyers. I suppose that in Washington, it’s just a matter of getting your name on a bill and trying to be the one that gets the bill actually pushed through.
Isakson’s bill is easily the most aggressive of the lot, and it is not going to be easy to get a bill like that passed. But as Mark Zandi, Chief Economist at Moody’s Economy.com says, “My guess is that if the economy does continue to struggle…if these rates stay higher and the scenario that the recession will end this year is wrong, then there will be another stimulus package early next year, and [the expanded tax credit] could be a part of it.”
So we shall see what happens. But whatever you do, don’t sit back and wait for one of these bills to get passed. Like I said, if you have the means to qualify now for the $8000 tax credit, do so.
By Andrew Brentan
June 30th, 2009 at 7:33 pm
Should the U.S. government really focus our tax dollars at reinflating the housing market. What is wrong with cheap housing? It is going to be painful in the short run but prices need to stay in relation with rising incomes and we have not seen those for years.
July 7th, 2009 at 1:52 pm
It would be nice if the tax credit got extended to all home buyers, and I think we have seen a good use of the credit so far, so extending it for another year would be nice as well-esp as people feel more comfortable with the economy leveling out where it is.
Leon Belenky’s last blog post..Luxury Homes on the Sunset Islands Miami Florida
July 8th, 2009 at 2:15 pm
I think government should extend the time period. A lot of people are thinking about purchasing a home due to the recession but some are waiting.
July 9th, 2009 at 12:48 pm
Having the tax credit available to only first-time buyers seemed quite unfair to me. It also limited the number of people who might be interested in a home purchase. I talked with a couple last weekend who had owned a home about 2 years ago. If they bought a home, they would not qualify for the tax credit. If Uncle Sam is going to give away our money, why not put more of it in a program where it will help more people, including those of us who are in the real estate industry?
Jim Gilbert’s last blog post..South/Southwest Austin New Home Communities Update
July 14th, 2009 at 10:29 am
Let’s hope for the extension, there’s no way I’m gonna make it before December…
August 3rd, 2009 at 2:26 pm
God I hope it’s extended. That would help a lot of people who won’t be ready until after the deadline.
August 21st, 2009 at 12:37 pm
I think adding the provision to allow $3,000.00 tax credit to refinance would really ‘drum up business’. Personally I would like to refinance my home and rental property but it would take too long to break even after all the closing costs.
December 22nd, 2009 at 2:10 pm
I am hoping for the extension, fingers crossed hay !
March 24th, 2010 at 9:40 am
I am also hoping for this, I will too keep my fingers crossed.
August 2nd, 2010 at 9:11 am
I blogged about this myself recently, and it was a pleasure to read your take on it mate. – driving101.
Samuel @ Driving Schools Bromley´s last blog ..
August 2nd, 2010 at 9:22 am
I wrote on this very subject myself recently, and it was a pleasure to read your view on it mate.
Regards,
driving101
Thomas @ Driving Schools Bromley´s last blog ..