Yesterday Senators agreed to extend the first-time home buyer tax credit which will expire on November 30 this year. However, the agreement is not law yet.
The good news is that it would be available to qualified first-time home buyers with an up-to-$8,000 tax credit until April 30, 2010. Buyers would need to sign a sales agreement by the end of April and close on their home by June 30, 2010.
Another version of the legislation circulating suggests a full $8,000 available in quarter 1 of 2010, $6,000 in Q2, $4,000 in Q3 and $2,000 in Q4 with the credit expiring December 31, 2010.
But, it also offers a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years. This opens up a credit to buyers to a new segment that hasn’t been enticed to enter the housing market with federal incentives yet.
As more details emerge or the final version becomes law, we’ll keep you posted. Let us know what you think the tax credit extension can do in your market for your business.