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HOMEOWNER TAX CREDIT EXPANSION, EXTENSION BOON TO LOCAL REALTORS

By Amy Widner/OF THE COMMERCIAL STAFF
Tuesday, November 10, 2009 12:15 AM CST

The expansion of tax credits beyond first-time homebuyers is the big news to come out of last week’s housing bill, according to Realtors in Pine Bluff and across Arkansas.

The $8,000 tax credit for first-time homebuyers that has been in place since February was extended to April 30, 2010. Otherwise, it would have expired at the end of the month.

Home owners

To it was added a $6,500 tax credit for those who have owned their residence for at least five years and want to buy a new home.

Becky Bilgischer of Hometown Realty Services in Pine Bluff said the first-time homebuyer tax credit has been helping, and she is excited about expanding that momentum to a new market.

“It’s given working-class people like us, who are like, ‘Yeah, I’ve been in a home for 10, 15 years, now I’d like to move up a little bit,’” Bilgischer said. “The interest rates are so low, you almost feel bad seeing all that money go to first-time buyers, but now there’s something for the rest of us, too, a chance to get into something a little nicer.”

As for the first-time homebuyer credit’s continuation, “I had a couple of homes, cramming to get them done by Nov. 30, but now we have more time,” Bilgischer said.

Ethan Noble, director of media relations for the Arkansas Realtors Association, said he’s been hearing the same sort of enthusiasm from Realtors across the state.

“The reason [we’re so excited] is we saw sales increase throughout 2009 in large part due to the tax credit,” Noble said. “What we really like is this $6,500 credit for move-up buyers. What we’ve been hearing from a lot of Arkansas Realtors is that they have a lot of more expensive houses that haven’t been selling. They’re hoping that those new incentives will help encourage those people who have been hesitant so far to go ahead and take that step, so we can get down some of that excess inventory.”

The income limit has been raised for the tax credits. It is now $125,000 for single taxpayers and $225,000 for married taxpayers filing jointly. If the homebuyer sells the house before three years, they must pay back the tax credit. Homes priced above $800,000 are not eligible.

More information about the Worker, Homeownership and Business Assistance Act of 2009 is available online at www.federalhousingtaxcredit.com.

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