This week in quick succession, the U.S. Senate and U.S. House of Representatives, on Wednesday and Thursday respectively, voted to extend the home credit in a new $24 billion economic stimulus bill, and today President Obama signed it into law. The bill extends tax incentives to prospective homebuyers; it also includes additional benefits to those who have lost their jobs in the ongoing business slump.
One part of the bill builds on provisions in the $787 billion stimulus package enacted last February, renewing the government’s $8000 tax credit for first-time home buyers through the first six months of 2010. The other part addresses the continuing high jobless rate with tax cuts for struggling businesses and provides another 14 weeks of benefits to all those out of work, whose benefits have been exhausted or will be exhausted by the end of the year.
The first-time homebuyer $8000 tax credit which was set to expire at the end of November will now be extended through the first six months of 2010; in order to qualify, buyers must sign a binding contract by the end of April. 2010.
For existing homeowners, this newly expanded program includes a $6500 credit for those who buy a new home after living in their present home for a minimum of five years.