House Passes Tax Credit for Homebuyers, Obama to Sign $8K Incentives

Summary: The United States Congress, following calls of President Barack Obama, has passed a bill that would give up to $8, 000 tax credit to first time homebuyers. The move was part of the government stimulus package, which aims to ensure the smooth flow of the economic recovery.

Aside from the home incentives, the government has also extended the unemployment claims and lengthened the deadline for buyers.

The United States Congress has passed on Thursday the popular expanded tax credit bill for first time homebuyers in a bid to encourage Americans to spend their money to keep the economic recovery going.

The bill, which aims to give big tax break for homebuyers, is set to give up to $8, 000 to first time home buyers while others can receive up to $6, 500 tax incentives if they bought real estate properties before May 1.

White House officials said that President Barack Obama is set to sign the said bill on Friday. It will be recalled that the president has been pushing for the said program, which gives extension to unemployment claims and a longer period for tax breaks on businesses losing money.

The program has been implemented starting last January as part of Obama’s stimulus program. With its expiration by the end of November, the president has asked the Congress to extend its implementation until May and include those who can afford to by another house.

Under the said bill, homebuyers who are currently paying for their homes for five years is also eligible or subject to income limits and other tax credits of up to $6, 500. To qualify for the program, buyers will have to sign the deal with property developers before the first day of May and close the contract by July 1.