President Signs Legislation to Extend and Expand Tax Credit

President Obama signed HR 3548 or The Worker, Homeownership, and Business Assistance Act of 2009, a bill that extends unemployment benefits and includes an amendment to also extend and expand the federal tax credit. NJAR® anticipates that the newly signed legislation will help maintain the recent momentum seen in the New Jersey real estate market and spur the state’s economy as a whole. The legislation will extend the $8,000 first-time home buyer tax credit past its original November 30 deadline, and it will now be available through April 30, 2010. Additionally, existing homeowners who have lived in their homes for at least five consecutive years out of the last eight will be eligible for a credit that can total $6,500. Other details of that amendment are as follows: 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 purchasers. No change to definition of first-time purchaser.
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.
The purchase price of the property may not exceed $800,000.
New anti-fraud limitations are imposed.
For additional details, please visit www.REALstoryNJ.com/Home-Buyer-Tax-Credit and read NJAR®’s press release.