February 25, 2009 – (RealEstateRama) — The new economic stimulus legislation signed into law by President Obama on Feb. 17 contains several provisions that will be beneficial for members – and help stimulate demand for housing.
“We are certainly hopeful that the newly passed economic stimulus bill, which includes some favorable elements for first-time home buyers and small businesses, will have a positive impact that will help get housing and the economy back on track,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.
The legislation created a bigger and better home buyer tax credit than the one that was enacted in July last year. A key difference is that the previous tax credit was an interest-free loan and had to be repaid over 15 years, while the new credit is a true tax credit and does not have to be repaid.
The new tax credit:
Is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
Is available for homes purchased between Jan. 1 and Nov. 30, 2009.
Does not have to be repaid, unless the home is sold within three years.
Has income limits of $75,000 for single taxpayers and $150,000 for married couples.
The consumer Web site NAHB created, www.federalhousingtaxcredit.com, which features content in English and Spanish, has been updated with the new information. The site includes basic information about the tax credit and a detailed question and answer section. It also describes other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.
NAHB also updated the set of online resources at www.nahb.org/taxcreditmaterials that are designed to help members understand the credit and promote it to consumers. They include talking points, a fact sheet, radio spot scripts and a consumer handout that includes the credit in the “top reasons you shouldn’t wait to buy a new home.”
“The new tax credit provides a great opportunity for first-time home buyers,” said Robson. “Combined with today’s near record low interest rates, the large selection of homes on the market, and very competitive pricing, the tax credit should be the extra incentive needed to get prospective buyers who have been sitting on the fence into the market.”
To learn more about how the legislation will help the home building industry, read the Feb. 17 issue of Nation’s Building News at to www.nahb.org/nbn.
If you have any questions about the tax credit promotional materials, or would like help developing other ways to promote the tax credit to home buyers, contact NAHB Public Affairs by e-mail at publicaffairs (at) nahb (dot) com or at 1-800-368-5242, extension 8447.