$7500 and Economic Stimulus Package

UDATE: Feb 19, 2009

See the following websites for information on the $8000 housing tax credit:

http://www.federalhousingtaxcredit.com/

http://www.mhdc.com/homes/tca/index.htm

UPDATE: Feb 15, 2008

Congress has finally passed the stimulus bill.  As mentioned before, below are the details.

1.) First time home buyers will receive $8,000

2.) A first time home buyers is anyone who has not owned their primary residence in the last 3 years

3.) This is for any home purchased from January 1, 2009 till December 31, 2009

4.) The $8,000 will not have to be repaid

5.) Mortgage Revenue Bonds are allowed so that the cash is available at closing

6.) If the home buyer leaves the house within 3 years, the $8000 would have to be repaid

President Obama will be signing the bill on Monday.

End of latest update.

The federal government has created a $7,500 tax credit for first time home buyers. In the new economic stimulus package being voted on today (Wednesday) in the house, the bill would strip the requirement to repay the $7500 tax credit. The senate bill that will be debated next week also strips the repayment requirement and in addition extends the deadline to purchase a house from June 30, 2009 to September 1, 2009. I will keep you informed as to how the votes turn out and if these provisions stay in the bill. Coupled with the new program from the state, Missouri will be the only state in the nation to be in a good position to start using these tax credits immediately.

LATEST UPDATE: 2/7/09

The senate is currently debating a stimulus package with the following included:

1.) Raises the $7,500 Tax Credit to $15,000

2.) Extends the date from June 30, 2009 to September 1, 2009

3.) Tax Credit will not have to be repaid

4.) All homebuyers will be able to use this tax credit

The senate is set to conclude debate on Monday with the official vote being Tuesday.  They will then send this back to the house to try and iron out the differences.  The House and Senate Leaders hope to have this on the President’s Desk by Monday, February 16th.

Many buyers are currently aware of what is going on in Washington.  They are hesitant to make a move until they know what is going on with this bill.

General Info:

Link to Expanded Use brochure.

This new stimulus package will NOT be retroactive as to the repayment portion of the tax credit. If you bought a house in 2008 (on or after April 9th) you will be able to receive the up to $7,500 tax credit which you will have to repay over the next 15 years.

This new bill only deals with homes purchased in 2009.

(Data Supplied By: the Franklin County Construction Industry Council)

Advertisements
Published in: on January 28, 2009 at 11:08 am  Comments (6)  
Tags: , , ,

The URI to TrackBack this entry is: https://guymidkiff.wordpress.com/2009/01/28/7500-and-economic-stimulus-package/trackback/

RSS feed for comments on this post.

6 CommentsLeave a comment

  1. I recently purchased a home as a first-time homebuyer in November 2008. Would this proposed change in the tax credit be retroactive for me? In other words would I still have to pay it back?

  2. I am a little (actually a lot) worried about this new stimulus version of the tax credit. Last summer’s tax credit had a deadline beginning April 8th 2008. I closed on May 1st 2008, so I am eligible. I read it another article that the House and Senate versions are for those buying a new home beginning JANUARY 1st 2009. So would I then NOT qualify? If so, shouldn’t I file now, and claim the ‘old” credit before the new law goes into effect, or wait, hoping it will be at the original dates of April 8th 2008 from the “old” tax credit?

    Any clarification or direction you could point me in would be appreciated.

  3. This new stimulus package will NOT be retroactive as to the repayment portion of the tax credit. If you bought a house in 2008 (on or after April 9th) you will be able to receive the up to $7,500 tax credit which you will have to repay over the next 15 years.

    This new bill only deals with homes purchased in 2009.

  4. I just closed on 1/30/09. I’d like to go for the credit in TY 2008. My question assumes the stimulus gets passed without major provisions to this part of the bill. Do you think I’d qualify for the nonrepayment of the 7500?

    I’m just concerned that since I’m filing for 2008, I’d only qualify for the repayment style of credit. Or must I wait until 2010 and claim it on my 2009 taxes?

    If you think it is a true credit (but claiming in 2008) can I find it in writing?

  5. i am all so wondering if I take the $7,500. tax credit on my 2008 taxes for a home purchased in Feb. of 2009 will it be forgiven.

  6. If you are a first time home buyer – have not owned your primary residency in the last 3 years – and purchased your house between April 9th, 2008 and December 31st, 2008, you may receive a $7,500 tax credit that you would have to pay back – $500 per year for the next 15 years.

    If you purchase your home from January 1st, 2009 through December 31st, 2009, you can receive a tax credit of $8,000 which will not have to be repaid. There are programs through the State of Missouri that will allow you to receive this $8,000 at closing.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: