Stimulus Package - Modifications to the American Recovery and Reinvestment Act of 2008
The "American Recovery and Reinvestment Act of 2009" was passed by the House and Senate on February 13, 2009. According to the NAR website, the "bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser."
The President is expected to sign the bill this week (February 17,2009). This bill modifies the 2008 legislation and the following chart (NAR) shows the changes with the major modifications being italicized.
With low interest rates, favorable FHA financing, and lower prices, the $8,000 tax credit will offer a windfall to home buyers that purchase by December 1, 2009. The original tax credit approved in the 2008 received mixed reviews as their was a repayment requirement. Since this has been removed, and the consumer has an extended time-frame, expectations are that many first-time homebuyers will take advantage of the market.
Call RE/MAX Country Properties/innovations real estate at 800-222-2829 for assistance for New Hampshire homes for sale, Maine real estate, Massachusetts real estate and Rhode Island real estate.
To view home buying options,obtain information about New England communities and search the MLS go to Virtual Homes real estate.
