Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit. That bill will be sent to President Obama for his signature in the next day or so. This is a major victory for consumers and the housing economy.
The tax credit for first time buyers has been extended to April 30th, 2010 and remains at $8000 for marrieds and $4000 for single filers. However, the income limit has been raised to $125,000 for singles and $225,000 for marrieds. This makes the tax credit more compelling for home buyers and sellers in Montclair, where the median home price hovers around $750,000, as well as for many other towns in Essex County.
The tax credit has also been extended to current homeowners who have lived in their homes as a primary residence for 5 of the last 8 years. For current homeowners, the credit is $6500 for marrieds and $3200 for singles. Purchase must be for a house that is $800,000 or less. Click here for a chart summarizing the differences between the previous and new version of the tax credit.