The Senate last night passed an expansion of the tax credit proposal. The proposal would be available to all purchasers (not just first-time homebuyers). NAR was instrumental in getting this provision passed by the Senate.
The key elements are:
- A tax credit in the amount of $15,000 or 10 percent of the purchase price (whichever is less), with the option to utilize all in one year or spread out over two years
The tax credit is available to all purchases of any home from date of enactment for one full year.
Able to claim the credit against the 2008 tax return
Buyers must occupy the homes for two years as their principal residences
Purchases of homes by investors are ineligible
Terminates the previous $7,500 Housing Tax credit on the date of enactment
The Senate is could pass its entire Stimulus Bill by this weekend. The House and Senate would then likely have a conference next week to work out the differences.