Mark Johnson Custom Homes Blog

St. James Plantation Builder Mark Johnson Custom Homes would like to share with our readers the latest on the New Home Buyer Tax Credit extension. RealtyTimes.com’s Kenneth R. Harney reported this morning on the latest Senate plan which would continue to offer the $8,000 tax credit through November 30, 2009 and create a $6,500 tax credit for previous homeowners of five consecutive years that now would like to purchase another as their main residence. Below is an excerpt and to read the complete article, click here!

“That would still be enough, sponsors of the plan believe, to encourage people now on the sidelines to get into the market for new and existing homes in early 2010 – and thereby help stimulate the economy and create jobs.

The Senate plan would also raise household incomes limits for the credit to $125,000 for single buyers and $250,000 for married couples – far more generous than the current $75,000 and $150,000 maximums.

Extending the $8,000 credit, as it is now, has heavy bipartisan support on the House side as well. But key Democratic leaders there – and at the Obama White House – are concerned about the costs.

The current $8,000 credit costs the Treasury about a billion dollars a month in lost tax revenues, according to Congressional budget estimates. Opening up the program to existing home owners – even in a restricted way – would add to that cost.

On the other hand, limiting any extension to six months would be less expensive than a full-year extension, as advocated by major housing lobbies, including the National Association of Realtors and the National Association of Home Builders.”