Homebuyer Tax Credit Extension To Take Effect Today

Press Release

Beginning today, Maine homebuyers will be able to take advantage of the $8,000 homebuyer tax credit for an additional five months, Congresswoman Chellie Pingree announced.

"Over the last few months this tax credit has helped jumpstart the economy while making the dream of owning a home possible for thousands of Mainers," said Pingree. "This legislation primes economic recovery for continued momentum as it opens up the market to even more people across the country."

The $8,000 first-time homebuyer tax credit made available through the American Recovery and Reinvestment Act was initially set to expire today. However, under the Worker, Homeownership and Business Assistance Act passed last month, the credit is extended through April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The legislation provides a new $6,500 homebuyer credit to homeowners who have lived in their current residence for five years. It also provides an extra year for members of the Armed Forces to buy a principal residence in the U.S. and still qualify for the credit. Pingree voted in support of the legislation.

The first-time homebuyer tax credit already has a proven record of success in increasing home sales in Maine and throughout the U.S. In October, the National Association of Realtors (NAR) reported an unprecedented nine consecutive months of increases in the number of signed home sales contracts. Additional NAR research suggests that, to date, as many as 355,000 sales this year can be directly attributed to the availability of the credit.

The American Recovery and Reinvestment Act was passed by Congress and signed by the President earlier this year.

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