This last Wednesday, the Senate has approved an extended and expanded tax credit for home buyers. The First Time Home Buyer Tax credit has been seen as a huge success in Arizona home sales and nationwide real estate. Its expiration on November 30 has had many in the AZ real estate industry feeling nervous about what its end would mean. 

Those fears can now be put aside.  While the bill still has to pass through the House, which it is expected to do next week, is was overwhelmingly approved by the Senate in a 98-0 vote.

What is new and improved with the extended and expanded tax credit?  The new and improved tax credit is still for first time home buyers but will also include home buyers who haveowned their current home for 5 years or more.  The credit is up to for $6,500 for these current homeowners and remains at up to $8,000 for First time home buyers or home buyerswho have not owned a home for the past three years.  The tax credit is income restricted, as an individual cannot make more that $125,000 annually and a couple cannot make morethan $225,000 jointly. 

A home must be a primary residence and valued at $800,000 or less.  Buyers must have an Arizona property under contract to purchase by April 30, 2010,and the AZ property must close by June 30, 2010.

The passing of this extended, expanded tax credit is good news on the Arizona home sales front and is expected to be the last taxcredit offered for a long time to come. 

Gina McKinley, a Arizona real estate agent, can help you find your perfect Chandler AZ home, Gilbert AZ home, Mesa AZ home, Scottsdale AZ home, or Phoenix AZ home to take advantage of the new and expanded tax credit for home buyers..  Gina McKinley can be reached at (480) 355-8645, by email, or on her Arizona real estate website.