New Website Explains New First-Time Home Buyer Tax Credit

The National Association of Home Builders (NAHB) has launched a newly-designed Web site, www.federalhousingtaxcredit.com, that provides detailed information about the $8,000 tax credit for first-time home buyers that is a key measure in the sweeping economic stimulus legislation signed into law Feb. 17 by President Barack Obama.

In addition to being limited to first-time home buyers, the tax credit:

• Is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
  
• Is available for homes purchased on or after January 1, 2009, and before December 1, 2009.
  
• Does not have to be repaid.
  
• Has income limits of $75,000 for single taxpayers and $150,000 for married couples.
  
• Allows tax credit home buyers to participate in the mortgage revenue bond program; and
  
• Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds.
  

The Web site at www.federalhousingtaxcredit.com includes basic information about the tax credit and a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.

The final stimulus bill also includes several other provisions that will help small businesses and otherwise bolster the housing market. For example, it will:

• Reinstate FHA, Fannie Mae and Freddie Mac loan limits of $729,750 in high-cost areas through the end of this year; - Temporarily allow exchange of LIHTC allocating authority for tax-exempt grants and appropriate $2 billion in HOME funding for affordable housing projects;
  
• Provide up to a 10-year deferral of tax due to business debt restructuring;
  
• Expand the net operating loss carryback period for small businesses from 2 years to 5 years for losses arising in the 2008 tax year; Extend the 25C existing home remodeler credit through the end of 2010,
  
• Increase the credit rate from 10% to 30%, increase its lifetime cap from $500 to $1,500, and expand the set of qualifying property; Provide an Alternative Minimum Tax (AMT) patch for 2009;
  
• Increase bonus depreciation and Sec. 179 small business expensing for business investment in 2009;
  
• Increase the New Markets Tax Credit allocating authority for 2008 and 2009; and
  
• Delay for one year the start of the 3% government contractor withholding requirement (from 2011 to 2012).