WASHINGTON, D.C. – October 14, 2009 – (RealEstateRama) — A tax credit that has helped more than 48,000 Ohio families purchase their first homes will expire on Dec. 1 unless Congress passes an extension. U.S. Sen. Sherrod Brown (D-OH) announced his support today for S. 1678, a new bill that would extend the first-time homebuyer tax credit through May 31, 2010.
“The first-time homebuyer tax credit is critical to getting our economy back on track,” Brown said. “Not only does the tax credit make home ownership accessible to more Ohioans, it pumps money into our state’s economy. This creates jobs, helps stabilize home prices, and shores up property tax bases in our communities.”
The first-time homebuyer tax credit was created in 2008 through passage of the Housing and Economic Recovery Act of 2008 and was extended to Nov. 30, 2009 through the American Recovery and Reinvestment Act of 2009 (ARRA). It provides a refundable tax credit – equal to up to ten percent of the purchase price of the home not exceeding $8,000 – for qualified buyers who have never owned a home or have not owned one in the past three years. Eligibility is based on income – with the credit reduced or eliminated for a single filer with an income of $75,000 or a joint filer with an income of $150,000 or more.
Brown is cosponsor of S. 1678, bipartisan legislation that would extend the first-time homebuyer tax credit through May 31, 2010. Nationally, more than 1.4 million taxpayers have utilized the tax credit so far. Ohio ranks ninth in the nation for number of homes purchased through the tax credit – with 48,771 households receiving tax credits valued collectively at $325,696,178, as of Aug. 22, 2009. More information on the tax credit is available on the IRS website.