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Rod Herman's Blog

By Rod Herman | Agent in Benicia, CA

Breaking News: Compromise Stimulus Bill Axes Senate’s Proposed $15k Home Buyer Tax Credit

UPDATE: 2-12-09 10:30 AM PST – If nothing else changes between now and the time Congress votes on the bill tomorrow, it looks like the Home Buyer Tax Credit proposed in the House version of the stimulus bill, with one minor change, will be the included in the final bill that goes to Pres. Obama.

That would provide an $8,000 tax credit to buyers who close escrow between the date the bill is signed into law and Aug. 31 of this year. And, there would be no repayment, making it a true credit, as long as the homeowner stayed in the home for at least three years.

The House version of the bill had recommended keeping the credit at its current $7,500, so the compromise bill increased the credit by $500, but the full $7,500 that the Senate had proposed.

However, I’ve read that the current $8,000 figure could be changed again before tomorrow’s anticipated vote.

Stay tuned…I’ll update things as I find out more information…

ORIGINAL POST (2-11-09)

This just in from Washington — as the Senate and the House worked out a compromise Economic Stimulus Bill, one of the things that apparently was trimmed from the bill is the Senate-proposed $15,000 home buyer tax credit.

I haven’t seen details of the compromise bill — only various news accounts highlighting some of the items that were axed from the original House or Senate versions.

I detailed differences between the Senate and House bills in my post from a few days ago (see Related Reading link below).

Under the current law, the ‘tax credit’ is really nothing more than a glorified $7,500 interest-free 15-year loan, since it must be repaid in its entirety.

The original House version kept the credit at $7,500, but at least called for making it a true credit by eliminating the repayment requirement in most cases.

As of right now (Wed. evening), I’m not sure whether that repayment elimination feature was included in the compromise bill or not.

Once I have more details on the real-estate-related  elements that have been incorporated into the compromise bill, I’ll post them here.

So be sure to check back soon…

Related Reading: If Senate Has Its Way Tax Credit Won’t Just Be For First-Time Buyers

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Breaking News: Compromise Stimulus Bill Axes Senate’s Proposed $15k Home Buyer Tax Credit

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