The $7,500 Tax Credit May Be DOUBLED
Just past in the Senate is an ammendment to the pending stimulus bill. As a quick aside… why don’t they call this a recovery bill? After the debacle of the TARP/Stimulus you would think they would try to seperate them as much as possible.
Back to the matter at hand. Sen. Johnny Isakson (R) Georgia introduced an ammendment to the bill that would convert the $7,500 First Time Home Buyer Tax Credit into a $15,000 (or 10% of purchase, whichever is less) credit for ANY home buyer purchasing a home to owner occupy. What does this mean? Well, a few things. The $7,500 credit to first time home buyers is GREAT, but it is only open to first time buyers that have not owned a home in at least the last 3 years. It also has to be paid back over 15 years ($500 per year due at tax time), but it is interest free. The new amendment not only doubles the amount but it removes any recapture after 2 years of ownership. While not clearly outlined in the article that I read, I would expect the same income limitations to be in place. It also makes this credit available to any home buyer shopping for their personal residence, no investment property. Upon further inspection it also appears that this credit could be claimed on 2008 taxes.
While this passed unanimously in the Senate it would still have to go back to the house after the modifications to the bill are complete for a vote. Something this particular ammendment does not address is relief, restructuring, or some other form of assistance to home owners that are struggling to keep their homes. While there seems to be new issues on the economic front every day to make things look a little more gloomy (job loss, consumer spending, credit markets) hopefully we can find enough little becons of light to get everyone through.
You can read an overview of the amendment over at USNews.
