This last Wednesday, the Senate approved an extended and expanded tax credit for home buyers. The First Time Home Buyer Tax Credit has been seen by many in the past years as a huge success nationwide and throughout Illinois. Its expiration on November 30 had many in the Chicago-land real estate industry feeling nervous about how that would affect the real estate industry as a whole. 

Luckily, those fears can now be put aside.  While the bill still has to pass through the House, which it is expected to do next week, is was overwhelmingly approved by the Senate in a 98-0 vote.

The new and improved tax credit is still for first time home buyers and will include:

• home buyers who have owned their current home for 5 years or more
• a credit increase up to $6,500 for current homeowners of 5 or more years
• the $8,000 credit will remain the same for first time home buyers, or home buyers who have not owned a home in the past three years
• an income restricted tax credit, regulating individuals that make more that $125,000 annually and couples that make more than $225,000 jointly
• the new home must be a primary residence and valued at $800,000 or less
• the property must be under contract to purchase by April 30, 2010
• the property must close by June 30, 2010.

The passing of this new and improved tax credit is good news on the Northwest Suburban home sales front and is expected to be the last tax credit offered for a long time to come. 

Joe Stacy, a Northwest Suburban realtor, can help you find the perfect Bartlett IL home, Schaumburg IL home, or Hoffman Estates IL home to take advantage of the new and expanded tax credit for home buyers.

Joe Stacy can be reached at 847-874-6731 or by email.

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