Signed and sealed on February 17, 2009....a $787 billion stimulus plan made up of tax cuts and spending programs aims at reviving the US economy. Although the package was scaled down from nearly $1 trillion, it still stands as the largest anti-recession effort since World War II.
Home Owners and potential homebuyers stand to gain from key provisions in this stimulus plan. Here are some of the current facts:
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 tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, and insulation.
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.
Not to mention other programs such as USDA, Local grants, and others.
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