New Home Buyer Tax Credit is Bigger and Better

COLUMBIA, SC – March 4, 2009 – On Feb. 17, President Obama signed the American Recovery and Reinvestment Act of 2009 into law. As part of $787 billion in economic stimulus measures, the legislation created a home buyer tax credit that is bigger and better than the previous credit that was implemented in July 2008. 

The Web site www.FederalHousingTaxCredit.com explains in detail the provisions of the new tax credit.  In a nutshell, it: 

• Provides a tax credit equal to 10 percent of the sale price of the home, up to an $8,000 maximum. Is a true tax credit. It does not need to be repaid, unless the home owner sells the home within three years of the purchase.
• Can only be used with the purchase of a home that will be the buyer’s principal residence. It cannot be claimed for the purchase of a vacation home or property to be used as a rental.
• Available to first-time home buyers only. A first-time home buyer is defined as someone who has not owned a principal residence for three years or more. 
• Applies to homes purchased by qualified buyers between Jan. 1 and Nov. 30, 2009. The purchase date is the date when closing occurs and the title transfers.

This new tax credit provides an unprecedented opportunity for people looking to buy their first home, said Barry Davis, HBA of Greater Columbia President.  Not only will they receive an $8,000 tax credit, they also will be taking advantage of record-low interest rates, a large selection of homes to choose from and competitive home prices.

House hunters will also find that many builders have inventory that is move-in ready, and may offer upgrades or other incentives to seal the deal.  Also, owners of existing homes who are looking to trade-up or relocate are ready to bargain.  And, as a long-term investment, homeownership still remains a solid investment for Americans.

Davis warns, however, that this opportunity won’t be around forever.  Keep in mind that you have to purchase your house on or before Nov. 30.

For more resources to help you understand the process of financing and buying a home, visit www.nahb.org/forconsumers today. Find your new home in the greater Columbia area at www.columbiabuilders.com.

The Home Builders Association of Greater Columbia (HBAGC) is a non-profit professional trade association founded in 1957 for the purpose of maintaining high professional standards in the residential construction industry.  Based in Columbia, SC, it is comprised of over 1,200 builder and associate firms representing over 11,000 industry professionals involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction.  The HBAGC is affiliated with the Home Builders Association of South Carolina and the National Association of Home Builders and is ranked by size in the top 25 of nearly 800 local Home Builders Associations in the country.  During a typical year, residential construction accounts for about five cents of every dollar spent in the U.S. economy, making home building one of the largest and most influential industries in the country.