According to Bloomberg.com:
Congress gave final approval to legislation expanding an $8,000 tax credit for first-time homebuyers, extending unemployment benefits and providing tax refunds to money-losing companies.
The House passed the measure today on a 403-12 vote, sending it to President Barack Obama, who will sign it tomorrow, according to spokeswoman Jen Psaki. All 12 House members voting against the bill were Republicans. The Senate approved the bill 98-0 yesterday after weeks of delays.
So it looks like it will be finalized tomorrow when President Obama signs it. The details are still not 100% clear, but the gist of it is that first time buyers (those not owning a home within the last 3 years) will be eligible for up to an $8000 tax credit (10% of home price, with an $8000 max), with a sign around contract date of April 30, 2010 (previously, you had to “close” by the end of this month, now you can close up to July 1st, 2010).
For a chart outlining the details, check this pdf out from the National Association of Realtors.
Previous Homeowners Are Not Left Out
Another part of this legislation is that a new tax credit for “long-time residents of same principal residence” has been created equaling up to $6500 (again, 10% of the purchase price up to $6500). The basics that you need to qualify for this is that you need to have lived here as your primary residence (no investment properties) for 5 consecutive years over the last 8 years. This is new, and should really help some move up buyers/sellers. Homes worth more than $800,000 are not eligible for this tax credit.
Those are the basics. Remember that I am just a real estate agent, and not a tax adviser, politician, or lawyer. Please seek your own qualified counsel for specifics on this. And remember that this isn’t official until President Obama passes it (which will apparently be tomorrow).
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