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Big news tonight… The Senate just voted to give a tax credit of up to $15, 000 to homebuyers check federal income tax. While I haven’t found details of the proposed implementation, I know that Senator Johnny Isakson of Georgia was pushing for a larger credit that would be available to all buyers of a primary residence, not just first-time homebuyers. He also wanted to extend the eligibility period to December 31, 2009 and waive the repayment requirement. I’ll update when I know more.
Update: From Isakson’s press release:
Specifically, Isaksonâ€™s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15, 000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislationâ€™s enactment, and the tax credit would not have to be repaid.
The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7, 500 housing tax credit on the date of enactment.
So… It sounds like that people who already bought might be out of luck. This reads like they’ll be subject to the rules that were in place when they bought. It’s still possible, of course, that the repayment requirement on the $7500 tax credit will be waived. Of course, none of this means anything until it’s actually signed into law.
Update: The Senate version of the $15, 000 homebuyer credit has been removed from the stimulus package.
Update: Looks like it will be an $8, 000 tax credit for first-time homebuyers.