Volume XVII, Issue 2                                                                          2nd Quarter 2009

Recovery & Reinvestment Act of 2009

Homebuyer Tax Credit:  The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  As with the  credit of 2008, the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, that amount will be refunded as a check to the purchaser

FHA, Fannie Mae and Freddie Mac Loan Limits:  The bill reinstates last year’s 2008 loan limits for FHA, Freddie Mac and Fannie Mae loans— $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750.   These 2009 limits will expire December 31, 2009. 

The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and REALTORS®.  While these new limits were included in a version of the original stimulus bill approved by the House, the bill first approved by the Senate did not.  The National Association of  REALTORS® Call for Action to both the House and the Senate prior to the final vote advocated strongly for the provisions which were then included in the final bill approved by both Chambers.

 

 

 

Energy Efficient Housing Tax Credits & Grants:  To promote green jobs and     energy independence, the bill provides state and local governments with $6 billion in energy  efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation.  Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money.  There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing (section 8 ) efficiency efforts. v

Source:  National Association of REALTORS®

 

                                       

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