Press Releases
SC State Housing Praises Tax Credit Extension and Offers More Good News for Some Military Members - 11/10/2009
The popular home buyer tax credit that was originally set to expire on November 30, 2009 will continue to be an incentive for prospective home buyers. Under the measure signed into effect last Friday, an $8,000 tax credit for first-time home buyers would be extended for up to seven months and expanded with a $6,500 tax credit for buyers who already own a home and have lived in their primary residences for at least five consecutive years out of the last eight. These home owners must be buying a new residence, though.
SC State Housing officials supported the measure and hail its passage. “The housing market here in South Carolina was beginning to pick up slightly,” said SC State Housing executive director Valarie M. Williams, “but the credit will help us continue that trend.” She said the measure will also help reduce the inventory of houses in the Palmetto State. “All of this will help spur the listless economy.”
The federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to that deadline. Members of the Armed Forces, military intelligence and Foreign Service who are on extended overseas duty or who have been on active duty for more than 90 days in 2008 and 2009 have another year to use the tax credit (through June, 30, 2011), according to Williams. “That’s a nice way to honor our military heroes as we approach Veterans Day.”
First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing home owners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500, existing homeowners must have lived in their current residence for at least five years.
The bill also increases the qualifying income limits to $125,000 for single tax filers (up from $75,000 previously) and $225,000 for joint filers (up from $125,000). The purchase price of the home is still capped at $800,000.
Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. Home buyers will not have to repay the credit as long as the home remains their primary residence for at least three years. This requirement is waived for active duty military personnel who are forced to move due to a military order.
Williams said an important part of the new bill is the precautions against fraud. “There is a minimum age of 18 for a home purchase and documentary proof of the purchase must be in place in order to receive the credit.”
Fast facts
Credit expanded
With the first-time home buyer tax credit scheduled to expire, Congress voted to extend it into the spring — and to expand it to many people who already own homes, as well as make special allowances for some military personnel:
• Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500.
• First-time home buyers — or people who haven't owned a home in the previous three years — could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.
• Military who are on extended overseas duty or who have been on active duty for more than 90 days in 2008 and 2009 have until June 30, 2011 to use the credit.
For more information on the homebuyer tax credit extension or other housing issues, contact SC State Housing, 803.896.9520 or visit the website: www.schousing.com.
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