Senate Approves $15,000 home buyer tax credit!

Tax Credit

I’ve been touting for some time now that the government needs to stimulate the economy with a big time tax credit to home buyers and now it looks like it may be coming!

The Senate today passed a tax credit of up to $15,000 for anyone who buys a house in 2009. Actually, the credit is for 10% of the purchase price up to $15,000. Obviously for us here in California that $15,000 will apply to just about any property as there are very few properties under $150K.

Previously the bill contained provisions for a tax credit of up to $7,500 for the purchase of a home but only for first time home buyers. The revised bill apparently does nto distinguish between a first time home buyer or a repeat home buyer as long as the home purchases a principle residence. No investment properties qualify.

Also, the previous bill was really just a 15 year interest free loan that needed to be paid back $500 per year. The amended bill is supposedly a real tax credit that does not have to be repaid (although there are some stipulations).

Here is the entire American Recovery and Reinvestment Act of 2009 in PDF format.

The Senate measure still needs to be passed and signed into law but I expect that will happen as soon as next week. Stay tuned….

Disclosure: I am not an tax expert , so please consult your CPA or tax adviser for additional information prior to purchasing a home.

*** Update – 2/15/09  -  $15,000 tax credit was rejected – $8,000 tax credit now being considered