The Senate has truly attempted to bring a kick into our somewhat slower real estate market.
This tax credit is not limited to first time home buyers, but all buyers in 2009. It is said to affect at least 500,000 buyers which should stimulate the market everywhere. It is a very powerful incentive and should get things going all around the country. As we have seen, the slowdown in the housing market has greatly affected all industries as it truly has become a trickle down throughout the economy. This will be a tax credit available to all purchasers of a principle residence for one year after its date of enactment. This would not need to be repaid and buyers could claim it against their 2008 and 2009 tax returns.
The purpose of this credit is hope to increase real estate sales, create jobs and create consumer confidence in the real estate market.