Washington, DC – January 7, 2010 – (RealEstateRama) — Congressman Brian Higgins (NY-27) joined Bonnie Saletta, President of Midtown Realty in Fredonia, NY and other local realtors to remind residents about the opportunity to receive up to an $8,000 tax credit with the purchase of a home. On November 5, 2009 the House of Representatives approved the extension and expansion of the successful homebuyer tax credit program.
“This tax credit has a far reaching impact on our local and national economy – providing substantial savings for homeowners; creating and protecting jobs in various housing related industries including construction, home improvement and real estate; and building stronger neighborhoods with the pride that coincides with homeownership,” said Congressman Brian Higgins, a member of the House Ways & Means Committee. “We encourage prospective homebuyers to take advantage of this valuable opportunity.”
“Thanks to this program we have been able to put people in homes that didn’t think they could do it at all,” said Midtown Realty President Bonnie Saletta, who also served as 2009 Secretary for the Chautauqua County Board of Realtors. “This has turned a year which would have been flat and made it productive. Residents are able to afford the American dream and local small businesses like ours remain busy because we wouldn’t be here if it wasn’t for our customers.”
The legislation approved by Congress and signed by the President extends the $8,000 homebuyer tax credit to first-time homebuyers who have a binding contract before April 30, 2010 and close on their home by June 30, 2010. Individuals with an income under $125,000 and joint filers with an income under $225,000 will be eligible for the full credit with a phase out for those who earn more.
In addition the program provides a “long-time resident” credit of up to $6,500 toward the purchase of a home priced up to $800,000 for homebuyers who have been homeowners in their residence for five or more consecutive years out of the last eight years.
Members of the U.S. Military serving outside the U.S. have an extra year, through April 30, 2011, to buy a home and still qualify for the credit.
Congressional Research Service (CRS) report estimates the effect of the 2009 tax credit on mortgage payments equates to an average monthly mortgage payment savings of $49 and annual savings of $589 for homeowners.
Bonnie Saletta added, “We have not seen the full impact of this yet because people who get this benefit will be putting these monies back into our economy.”
According to the latest CRS numbers over 50,000 people took advantage of the 2008 and 2009 tax credit in New York State alone. The American Recovery and Reinvestment Act initially extended the tax credit, which has provided a tax benefit to more than 1.4 million over the last two years to residents nationwide.
This week the NAR estimated that 900,000 additional first-time buyers and 1.5 million repeat buyers are expected to benefit from the credit extension and expansion.
Detailed information on the program, including specific eligibility requirements, is available at: www.realtor.org or www.irs.gov.
