The new homebuyer tax credit - the final version

The final version of the homebuyer tax credit going before the President is scaled back from the $15,000 tax credit recently passed by the Senate. President Obama is expected to sign the new tax credit into law as part of the American Recovery and Reinvestment Act of 2009.

Here are the basics:

• The maximum credit amount is $8,000.
• It applies to first-time homebuyers only.
• It does not require repayment, unlike the current $7,500 first-time homebuyer tax credit - which essentially amounts to a 15 year interest-free loan.
• The new tax credit will sunset the current $7,500 tax credit and apply to purchases between January 1st, 2009 and November 30th, 2009.

Here's a chart that summarizes the differences between the old tax credit and the new tax credit. We'll share more information once the new tax credit becomes law.

Have a good Sunday,

Dan Miller, Keller Williams Realty and DaneCountyMarket.com