First Time Home Buyers's Tax Credit Expansion

From last Friday's inbox:

Today, Pennsylvania Congressman Patrick Murphy (D-8th District) joined local realtors and homebuyers to announce the expansion of the first-time homebuyer tax credit to help more hardworking families in Bucks County and across the country achieve the American dream by owning their own home. Emma Ahedo, a Morrisville resident and first-time homebuyer taking advantage of the $8,000 tax credit, addressed reporters at the site of the new home she just closed on.

Congressman Murphy proudly supported the Emergency Unemployment Compensation Extension Act, which includes an extension of the $8,000 first-time homebuyer tax credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five years or more. It also helps military families struggling to make mortgage payments by making those payments tax-exempt. This legislation will create 350,000 construction jobs across the country, and allow more families to achieve the dream of home ownership while strengthening the economy.

“This homebuyer tax credit creates thousands of jobs for homebuilders, renovators, and realtors,” said Rep. Murphy. “Times are tough, but this tax cut will help get our economy moving again.”

The Bucks County Association of Realtors would like to thank Congressman Murphy for his ongoing strong support of real estate and housing in Bucks County ,” said Elise Haferl-Lykins, President-Elect of the Bucks County Association of Realtors. “Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through home ownership.”

Under the Emergency Unemployment Compensation Extension Act:

* The first-time homebuyers tax credit will be extended to April 30, 2010 for first-time homebuyers who enter sales contracts by that date and close within 60 days
* A new $6,500 credit is included for current homeowners buying a new home, as long as they have lived in their homes for five consecutive years
* Individuals can claim the credit on their 2009 tax returns, meaning they will see the credit quickly
* The income cap for qualifying for the credit will be raised to $125,000 for individuals and $225,000 for married couples (up from $75,000 and $150,000)
* Homes sold for up to $800,000 are eligible for the credit

Eligible 8th District resident are encouraged to contact their local realtor or contact Congressman Murphy’s office for more information on utilizing the first-time homebuyer credit.