Housing Tax Credit Extension and Expansion Passed!

After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension was reached and President Obama signed the bill on Friday, November 6.
 
The agreement on the extension and expansion of the credit is as follows:

• Credit will be available for purchases 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.
• Credit remains at $8,000 for first-time buyers. No change to definition of first-time purchaser.
• New $6,500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for five of the previous eight years.
• Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
• New anti-fraud limitations are imposed.
  

Look for new marketing materials to be available in Market Advantage this week.

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