Tax
Credit for Home buyers
First-time
home buyers who purchase homes from the start of the year until the end
of
November 2009 may be eligible for the lower of an $8,000 or 10% of the
value of
the home tax credit. Remember a tax credit is very different than a tax
deduction – a tax credit is equivalent to money in your hand,
as opposed to a
tax deduction which only reduces your taxable income.
The
tax credit starts phasing out for couples with incomes above $150,000
and
single filers with incomes above $75,000. Buyers will have to repay the
credit
if they sell their homes within three years.
Additional
Housing-Related
Provisions
Tax
Incentives to Spur Energy
Savings and Green Jobs
— This provision is designed to help promote energy-efficient
investments in homes by extending and expanding tax credits through
2010 for
purchases such as new furnaces, energy-efficient windows and doors, or
insulation.
Landmark
Energy Savings
— This
provision provides $5 Billion for energy efficient improvements for
more than
one million modest-income homes through weatherization. According to
some
estimates, this can help modest-income families save an average of $350
a year
on heating and air conditioning bills.
Repairing
Public Housing and
Making Key Energy Efficiency Retrofits To HUD-Assisted Housing —This
provision provides a total of $6.3 Billion for increasing energy
efficiency in
federally supported housing programs. Specifically, it establishes a
new
program to upgrade HUD-sponsored low-income housing (for elderly,
disabled, and
Section 8) to increase energy efficiency, including new insulation,
windows,
and frames.
Expanding
Housing Assistance
— This
provision increases support for several critical housing programs. It
includes
$2 Billion for the Neighborhood Stabilization Program to help
communities
purchase and rehabilitate foreclosed, vacant properties.
More
Help for Homeowners in the
Future
Another
thing to keep an eye on in the coming weeks is President
Obama’s plan to help
struggling borrowers before they are faced with a default on their
mortgage.
According
to reports, the Obama administration is discussing plans to help
borrowers who
are struggling to stay afloat, but who have not yet fallen behind on
their
payments. At this point, details are scarce; however, reports indicate
that
President Obama is looking to spend approximately $50 Billion to
directly help
homeowners before they face foreclosure and financial disaster.
;)
;)
