Will the $8,000 first time home buyer tax credit be extended or even expanded?

FWD: from Eleanor Thorne, Cary Mortgage Loans, Cary, NC

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Right now, there are 5 bills being presented in Congress which either extend or expand the current $8,000 first time home buyer tax credit which expires December 1, 2009.

The bills are:

Senate Bill S1230 - the Home Buyer Tax Credit Act of 2009 - introduced by Senator Johnny Isakson (R-GA), proposes a non-refundable tax credit up to $15,000, that can be split equally over two years, for all primary residence purchases - not just purchases by first time home buyers.

House Bill HR 2619 introduced by Representative Kenny Marchant (R-TX) proposes to extend the existing $8,000 tax credit to July 1, 2010 and add a tax credit of up to $3,000 for homeowners who refinance.

HR 2606 - the Home Buying Credit Expansion Act introduced by Representative Eddie Bernice Johnson (D-TX) proposes to remove the first-time home buyer requirement and would allow allowing all principle residence purchases to qualify for a tax credit. The bill would also extend the original bill through Jan 1, 2010.

HR 2801 - the Home Ownership Move the Economy (HOME) Act introduced by Representative Howard Coble (R-NC) is similar to S1230 discussed above but would extends the credit to Jan 1, 2011.

Finally, HR 2655 introduced by Representative Dan Burton (R-IN) would eliminate the first time home buyer requirement while extending the credit to Jan 1, 2011.

At a minimum, it looks like Congress will be having a healthy debate about whether to extend this credit and if it should be expanded. Personally, last year, I felt Congress should have enacted the proposal for the tax credit to be $15,000 and available for all home purchases. It is wonderful to provide incentives for first time home buyers but, given the state of the economy, it would be very beneficial to open the credit up ($8,000 or $15,000) to all home buyers. This could help provide a significant stimulus that the economy needs. Imagine how it would help the state of the Chapel Hill real estate market and the Durham real estate market.

I will keep you posted on new developments regarding the $8,000 home buyer tax credit.