October 29, 2009
DODD PRAISES AGREEMENT TO EXTEND THE HOMEBUYERS TAX CREDIT
WASHINGTON – Today Senate Banking Committee Chairman Chris Dodd (D-CT) praised the agreement to ensure that Americans would continue to have access to the Homebuyers Tax Credit. This tax credit is working to turn around the housing market and build economic security for millions of middle class families.
Dodd had joined Senator Johnny Isakson (R-GA) in pushing to extend the credit.
The final agreement includes Dodd and Isaksons’ provision to extend the credit to people looking to buy a new home after having owned and lived in a home for more than five years. More than 70 percent of existing homeowners will now be eligible to take advantage of this program and use the credit to buy a new home.
“Every economist will tell you we have to steady the housing market before the economy will turn around,” said Dodd. “We can’t afford to let this tax credit expire now. We need to be fighting with everything we’ve got.”
Summary of the agreement:
· Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for homeowners buying a new home from December 1, 2009 to April 30, 2010.
· Homebuyers with contracts as of April 30th qualify for the credit so long as they complete the transaction within 60 days.
· Available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a joint return.
· Not available for homes costing over $800,000.
· Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for 5 years or more.
· Provides authority to the IRS to do greater oversight while processing the return and requires that the taxpayer claiming the credit be 18 or older.
· Members of the military, military intelligence and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.
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