On Wednesday February 4th the U.S. Senate decided unanimously to included the Lieberman / Isakson Homebuyer Tax Credit in the American Recovery and Reinvestment Act. The proposal, introduced by Senators Joe Lieberman and John Isakson would double the maximum size of the homebuyer credit from $7,500 to $15,000 and remove some of the restrictions that have limited the usefulness of the credit. The amendment would give a tax credit of 10% of the sale price (up to $15,000). The Tax Credit would be available for one year period for all buyers of a primary residence…. and it is not repayable so long as you remain in the home as your primary residence for at least 2 years.
The outlook for the Homebuyer Tax Credit is a positive one because compared to many other provisions in the stimulus plan it is relatively inexpensive.
Guest blogger, Michael Polera, is a loan consultant with Baird & Warner Financial Services. Michael can be reached at 847.818.6029 or by email at michael.polera@bairdwarner.com.
02/14/2009 UPDATE: See “Economic Stimulus Package Includes $8,000 Tax Credit for Home Buyers” for home buyer tax credit revisions.
Fran Bailey, Realtor
