Friday, November 6, 2009

Housing Tax Credit Extended and Expanded | Current Tampa Home Owners Now able to Benefit

Congress announced yesterday that the first-time home buyer tax credit, originally set to expire at the end of this month, will be extended through June of 2010. In addition to an extension, the bill includes a $6,500 credit for “move-up” buyers interested in purchasing a new primary residence.

The first-time home buyer tax credit has shown significant results in the Tampa Bay real estate market, with home sales soaring over the last three months. The Internal Revenue Services reported that more than 105,000 Floridians have applied for the credit so far. Now, under the new bill, an even larger base of potential buyers will be able to benefit and take advantage of the program.

The new plan is designed to spark interest in the “move-up” market, with these potential home buyers previous excluded for tax credit program. This additional incentive is designed to make real estate purchases even more desirable for qualified repeat buyers.

The tax credit, along with affordable home prices and low interested rates, has helped boost real estate home sales over the past year. The National Association of Realtors estimates that by the end of November, the credit will have been used by 1.8 million buyers, at least 355,000 of whom would not have purchased a home otherwise.

The new bill, which also includes an extension to unemployment benefits, is expected be signed into law today.

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