Posted on November 07, 2009 by admin

Now that Congress has passed the Home Buyer Tax Credit Extension and President Obama has singed off on it, the homebuyers’ tax credit will be extended to April 30, 2010. 

The housing credit portion of the bill extends the $8,000 tax credit for home buyers who are purchasing  their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to other homeowners who have lived in their current home for at least five years and are seeking to relocate. 

Another modification to the original legislation raises the income limits for program participation from $75,000 for a single purchaser to $125,000 and from $125,000 to $225,000 for a couple.  There are also credits available on a diminishing basis above those income limits. 

Some say that this bill is merely accelerating purchases that would have occurred anyway and creating an artificial housing bubble.  Others say it is likely that the prior tax credit’s Nov. 30 expiration has already stolen a portion of housing demand from 2010. 

In signing the bill President Obama stressed that the measure is revenue neutral and will not increase the deficit.

What do you think?  I would love to hear your opinion.

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