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Homebuyer tax credit extension proposed

Posted by: VHFA on 9/17/2009

senator isaksonThere's activity in the U.S. Senate to extend the deadline and amount of this year's tax credit for first-time homebuyers.

The existing tax credit plan, part of the American Recovery and Reinvestment Act (ARRA), will expire at the end of November. It allows first-time homebuyers who buy a home on or after Jan. 1, 2009, and before Dec. 1, 2009, to file for a tax credit equal to 10 percent of the home’s purchase price, up to a maximum of $8,000.

Legislation proposed by Sen. John Isakson of Georgia (pictured) would extend the deadline through 2010, and increase the maximum amount to $15,000.

The bill, first introduced in the Senate this summer, failed in a close vote last month, but is gaining steam, according to an article published yesterday at Bloomberg.com.

Ask your VHFA participating lender for details on utilizing the tax credit.

Read the Bloomberg story online.