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LISTINGS

Congress Votes to Extend and Expand the Homebuyer Tax Credit

Congress has passed, and President Obama has signed, legislation to extend and expand the homebuyer tax credit. The agreement on the extension and expansion of the credit is as follows:

• The credit is available for homes purchased before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
• The credit amount remains at $8,000 for first-time purchasers. There was no change to the definition of a first-time purchaser.
• There is a new $6,500 tax credit for current homeowners who purchase a new or existing home between November 6, 2009 and April 30, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
• Income limits for first-time and repeat buyers are expanded to $125,000 on a single return and $225,000 on a joint return. The credit decreases for single buyers who earn between $125,000 and $145,000, and for couples earning between $225,000 and $245,000. Home buyers earning more than the maximum qualifying income -- over $145,000 for singles and over $245,000 for couples -- are not eligible for the credit.
• New anti-fraud limitations are imposed.

For more information on the expanded homebuyer tax credit, click here. If you have any questions, contact RAR's Government Affairs staff at 422-5023.