[youtube]http://www.youtube.com/watch?v=mEJL2Uuv-oQ[/youtube]With news out of Washington last night that the Senate decided to extend the $8000 first time home buyer tax credit as well as expand it to include some repeat buyers, my inbox has been swamped with enthusiastic emails announcing the extension.
Wait a minute.
Anyone remember Schoolhouse Rock?
A bill has to pass in both the House and the Senate before it becomes law.
Yes, the Senate agreed to extend the tax credit as we know it until the end of April. They also want to offer a reduced tax credit of up to $6,500 to buyers who’ve owned their current homes for at least five years.
The income levels eligible for qualification have also been increased.
To receive the maximum tax credit, individual duplex buyers can earn no more than $125,000/year. This figure is $50,000 higher than the previous cap. Married duplex buyers can now jointly earn up to $225,000 to earn the maximum benefit. This figure has nearly doubled.
Move up buyers would be faced with the same income caps. Their tax credit, however, would be a maximum of $6500.
As it stands, the Senate’s proposal would extend the tax credit deadline until April 30, with any purchase agreements written by that date needing to close no more than 60 days after in order to qualify.
Of course, both members of the House of Representatives and President Obama need to agree to this for it to take effect.
If you would like to have a chance to earn the credit, it probably wouldn’t hurt to give your Representative a call.