It passed the House on February 13, 2009. Also the Senate passed the bill so now we wait for the President to sing the bill soon. The bill is a $780 billion package; about 35% is devoted to tax cuts.
The President and congress says that will be the next “big” initiative.
The bill includes the following provisions:
Homebuyer Tax Credit: The bill provides for an $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. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
FHA, Fannie Mae and Freddie Mac Loan Limits. The idea in this bill is to reinstates last year’s 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. FHA $417,000 for Fannie and Freddie, maximum cap of $729,750.
Neighborhood Stabilization : The idea is to address the problems that can be created when whole neighborhoods are decimated by foreclosures. I went to a seminar about that in Coral Springs, FL, It wasn’t clear the rules but they are working on that. This bill will help families with incomes at or below 120% of area median income.
Commercial Real Estate provisions of the bill focused on green building and energy efficiency as well as business tax incentives.
And some more.
We hope that these changes will help Realtors and Consumers to bring the economy up.