Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, however, it still faces votes in the House & Senate. If passed, the agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.
The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.
The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000. The credit phases out for people making more than those amounts.
While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn't been finalized.
While Senate Republicans are likely to support the measure, House Democrats have raised concerns that it carries a high cost to the government. The Internal Revenue Service is examining the program for alleged abuse.
Labels: 8000, first time, home buyer, house, senate, tax credit, vote
On March 26th the Georgia Senate passed
House Bill 261. Under this bill, home purchasers would receive income tax credits of up to $3,600. Lawmakers voted 42-4 passing the bill in the Georgia Senate. The measure now moves on to a conference committee. The committee will work out the differences between the Senate version and the House version to create a compromised bill. Once this version is completed, it will go to the House and Senate again for another vote.
The goal of
HB 261 is to help revitalize Georgia’s residential real estate market. Lawmakers understand that we have to get the large amount of inventory in the area moving, and they hope this bill will stimulate home buyers who have been sitting on the fence.
The legislation would apply to new and previously occupied homes as well as residences that have been foreclosed. The credit could be used either for houses and condominiums and either on primary or second residences. In order to qualify, homeowners would have to apply for the credit within six months of the date the governor signs the bill.
This bill, if passed, could mean a total of $11,600 in tax credits for the purchase of a new home in Georgia if the home buyer qualifies for the federal tax credit as well. Even without the federal credit, a $3,600 tax credit could encourage many home buyers to act who previously had no incentive. We will keep you posted on this bill, and perhaps soon you can take advantage of this great home buying opportunity. With home prices and mortgage rates at their lowest in years, this bill could be the boost we need to get homes moving again.
Labels: 261, georgia, hb 261, house, house bill, mortgage rates, senate, tax credit
