Senate Passes $15,000 Home Buyer Tax Credit

It could be a good time to buy new digs. The Senate yesterday passed a new home buyer tax credit allotting buyers up to $15,000 in tax credits. The New York Times reports:

The Senate on Wednesday voted to expand the economic stimulus package with a tax credit for homebuyers of up to $15,000, a provision championed by Republicans as addressing a root cause of the recession.

The tax break for homebuyers, which the Senate approved by voice vote without opposition, was the second amendment in two days intended to encourage consumers to make major purchases. The tax credit would give buyers 10 percent of the price of a primary residence bought within one year, up to $15,000, and is intended to stabilize plummeting home prices, which caused a wave of foreclosures and led to the near collapse of the financial system as Wall Street firms wrote down billions in mortgage-backed assets.

With Wednesday’s additions, the cost of the Senate package has climbed well above $900 billion — the limit that Mr. Obama has set for the final legislation. Intense negotiations seemed likely over how to reduce the price tag.

Times are good for people with money to spare.

  • Chris

    FOR THOSE WHO BOUGHT IN JANUARY:
    THE HOUSE PASSED THE BILL FOR A $7500 TAX CREDIT THAT DOESN’T NEED TO BE REPAID AND IS AFFECTIVE FOR PURCHASES OF HOMES AFTER 01/01/09.
    THE SENATE CHANGED IT TO A $15,000 TAX CREDIT BUT IT IS ONLY AFFECTIVE FOR PEOPLE WHO PURCHASES AFTER IT’S SIGNED.
    IF THE SENATE PASSES THERE’S TODAY, THEN THERE WILL BE A MEETING BETWEEN MEMBERS OF THE SENATE AND MEMBERS OF THE HOUSE TO WORK OUT THE DIFFERENCES BETWEEN THE 2 BILLS.
    I BOUGHT IN JANUARY SO I OBVIOUSLY WANT THE $15,000 TAX CREDIT THE SENATE PROPOSED BUT WITH THE START DATE THE HOUSE PROPOSED.
    YOU NEED TO MAKE YOUR VOICE HEARD AND CONTACT YOUR SENATORS AND HOUSE REPRESENTATIVE. THIS IS AMERICA SO YOUR VOICE IS YOUR POWER. E-MAIL THEM OR CALL THEM. HERE IS A CONVENIENT NUMBER. CALL AND ENTER YOU ZIP CODE AND IT WILL GET YOU IN CONTACT WITH ALL OF YOUR CONGRESSMEN. DECISIONS ARE BEING MADE, DO IT NOW. 1-866-924-NAHB (6242)

  • Lauren

    I have a question we bought our house the end of April 2008…so does this mean I only qualify for the $7,500 that we have to pay back $500 every year starting in 2 years after we get the money? Or could I qualify for more then the $7,500? The $15,000 is that for only people that are purchasing houses in 2009? I am confused….

  • John

    Lauren, as I understand, you probably qualify for the 7500 that you have to pay back (I bought in 11/08 and this is what I qualify for). The 2 years bit is a little misleading. I think you will have to start paying it back with your 2009 return (in April 2010). You also have to pay back the full amount if you sell. Still, that’s not a bad deal, since the 7500 has all that time to earn you money (since it’s borrowed money, the safest place is a savings, CD or money market, though using it to pay down principle or make needed repairs is sound, since you get the $ back when you sell – just make sure to set aside $50/mo for repaying)

  • Sara

    I am building a home and will close at the end of august. do i qualify for the 15,000 credit (i know i dont qualify for the 8,000 first time buyer credit). i am just unsure of the time limit for the credit.

  • Sara

    oh….and how do i get it? file with my 2009 tax return?

  • LeRoy Romero

    Does the new credit still only help 1st time home buyers? If I purchased 11/2008 but was not a 1st time home buyer would I be able to use this tax credit?