Homebuyer Tax Credit: 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. As with the credit of 2008, the credit will be
claimed on a tax return to reduce the purchaser’s income tax liability.
If any credit amount remains unused, that amount will be refunded as a
check to the purchaser
FHA, Fannie Mae and Freddie Mac Loan Limits:
The bill
reinstates last year’s 2008 loan limits for FHA, Freddie Mac and Fannie
Mae loans— $271,050 for FHA and $417,000 for Fannie and Freddie, with an
overall maximum cap of $729,750. These 2009 limits will expire
December 31, 2009.
The inclusion of
these loan limit provisions in the final bill is a victory for
homeowners, buyers and REALTORS®. While these new limits were included
in a version of the original stimulus bill approved by the House, the
bill first approved by the Senate did not. The National Association of
REALTORS® Call for Action to both the House and the Senate prior to the
final vote advocated strongly for the provisions which were then
included in the final bill approved by both Chambers.
Energy Efficient Housing Tax Credits & Grants:
To promote green
jobs and energy independence, the bill provides state and local
governments with $6 billion in energy efficiency and conservation
grants for energy audits, retrofits and financial incentives. Through
2010, homeowners will be able to claim a 30% tax credit (up from 10%)
for purchases of new furnaces, windows and insulation. Another $5
billion will be available to modernize the nation’s electricity grid and
install smart meters on homes that help to save consumers money. There
is also $5 billion for weatherization assistance for low income
households and $2 billion for federally assisted housing (section 8 )
efficiency efforts.
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Source: National Association of REALTORS®
