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Final update to the Homebuyer's Tax Credit of $8,000. Read below for details about the plan.

Daily Real Estate News  |   February 12, 2009  | 

• FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.

• Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.

• Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.

• Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.

• Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.

• Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations

• Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds

• Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.

Good news for homebuyers in 2009. If you buy a home this year you'll be eligible to gain a tax credit of 10% of your annual gross income or of the purchase price whichever is greater, not to exceed $15,000.

Some important bullets to note:

• Purchases must be made within one year of this legislation being enacted
• This tax credit would not have to be repaid
• Taxpayers would be able to claim the credit on their 2008 income tax return
• This will only apply to the purchase of a principal residence
• The Credit would be recaptured if the home sold within two years of purchase
• This would sunset the current $7,500 housing tax credit on the date of enactment

Below is the actual article posted on Yahoo.com.

WASHINGTON – Historically huge to begin with, economic stimulus legislation is growing larger by the day in the Senate, where the addition of a new tax break for homebuyers sent the price tag well past $900 billion.

"It is time to fix housing first," Sen. Johnny Isakson, R-Ga., said Wednesday night as the Senate agreed without controversy to add the new tax break to the stimulus measure, at an estimated cost of nearly $19 billion.

The tax break was the most notable attempt to date to add help for the crippled housing industry and gave Republicans a victory as they work to remake the legislation more to their liking.

Democratic leaders hope for Senate passage of the legislation by Friday at the latest, although prospects appear to hinge on crafting a series of spending reductions that would make the bill more palatable to centrists in both parties.

Three swing-vote senators met with President Barack Obama at the White House on Wednesday to discuss possible cutbacks, but they declined to discuss details of their talks. Obama has made the legislation a cornerstone of his recovery plan.

For their part, Senate Republicans signaled they would persist in their efforts to reduce spending in the measure, to add tax cuts and reduce the cost of mortgages for millions of homeowners.

Officials figures were unavailable, but it appeared that the measure carried a price tag of more than $920 billion, making it bigger than the financial industry bailout that passed last year and as large as any measure in memory.

Despite bipartisan concerns about the cost, Republicans failed in a series of attempts on Wednesday to cut back the bill's size.

The most sweeping proposal, advanced by Sen. Jim DeMint, R-S.C., would have eliminated all the spending and replaced it with a series of tax cuts. It was defeated 61-36.

Democrats also upheld a so-called Buy American provision that requires projects financed by the measure to be built with domestically produced iron and steel.

But with Obama voicing concern about the provision, the requirement was changed to specify that U.S. international trade agreements not to be violated.

Additionally, Democrats turned back an attempt to strip out a provision that Obama has said was essential. It would provide a tax cut of up to $1,000 for working couples, including those who do not make enough to pay income taxes.

Isakson said the new tax break for homebuyers was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.

The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.

Isakson's office said the proposal would cost the government an estimated $19 billion.

The provision was the second tax cut approved in as many days targeted to individual industries. On Tuesday, the Senate voted to give a break to consumers who buy new cars.

The House approved its own version of the bill last week.

1. Take a 10 to 30 minute walk every day. And while you walk, smile. It
is the ultimate anti-depressant.

2. Sit in silence for at least 10 minutes each day. Talk to God about
what is going on in your life. Buy a lock if you have to.

3. When you wake up in the morning complete the following statement,
'My purpose is to __________ today. I am thankful for______________'

4. Eat more foods that grow on trees and plants and eat less food that
is manufactured in plants.

5. Drink green tea and plenty of water. Eat blueberries, wild
Alaskan salmon, broccoli, almonds & walnuts.

6. Try to make at least three people smile each day.

7. Don't waste your precious energy on gossip, energy vampires, issues
of the past, negative thoughts or things you cannot control. Instead
invest your energy in the positive present moment.

8. Eat breakfast like a king, lunch like a prince and dinner like a
college kid with a maxed out charge card.

9. Life isn't fair, but it's still good.

10. Life is too short to waste time hating anyone.

11. Don't take yourself so seriously. No one else does. J

12. You are not so important that you have to win every argument.
Agree to disagree.

13. Make peace with your past so it won't spoil the present.

14. Don't compare your life to others. You have no idea what their
journey is all about.

15. No one is in charge of your happiness except you.

16. Frame every so-called disaster with these words: 'In five years,
will this matter?'

17. Forgive everyone for everything.

18. What other people think of you is none of your business.

19. GOD heals everything - but you have to ask Him.

20. However good or bad a situation is, it will change.

21. Your job won't take care of you when you are sick. Your friends
will stay in touch.

22. Envy is a waste of time. You already have all you need.

23. Each night before you go to bed complete the following statements:
I am thankful for __________. Today I accomplished _________.

24. Remember that you are too blessed to be stressed.

25. When you are feeling down, start listing your many blessings.
You'll be smiling before you know it.

Share this with others…they may need enlightening!