Tax Credit Expansion to Boost the Economy

It’s no secret that the tax credit for homebuyers was extended on November 6 as President Obama signed it into law. To most of us this is old news, but the National Association of Home Builders is spreading the word about the extension, as well as the details, since it has been expanded to include more than just first-time homebuyers.

The new law, which still includes the $8,000 credit if you’re a first time homebuyer will now be extended through April. This means that you must have you’re home under contract by April 30 with a closing date on or before June 30. The newer part of the law will now include repeat homebuyers who can take advantage of a $6,500 credit if they have been living in their current home for 5 consecutive years out of the past 8 years.

Income limits have also increased so you have a chance of qualifying more now than ever. Single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 are eligible, and those who earn more up to $20,000 over the limits can qualify for partial tax credit.

It’s quite obvious that the tax credit has had an overwhelming success in the past, and there’s no reason to believe that it won’t continue. According NAHB Chairman Joe Robson, due to the expansion, close to 70% of potential homebuyers will qualify for a tax credit. This is sure to boost the housing market in Atlanta as well as the economy of the nation overall.

Overall, a lot of attention has been focused on the new law and its positive benefits. The NAHB estimates that over 200,ooo jobs will come out of the extension and an estimated $9.6 billion worth of wage income too. It seems as if the tax credit is just what we have been needing, and now there are a few more months to take advantage of it now. Visit NAHB’s website to find out all the details on the tax credit.