President Obama is scheduled to sign an economic package passed by Congress this week that will help millions of Americans who have lost jobs and have been unable to rejoin the workforce. It would also extend for seven months an $8,000 tax credit for first-time homebuyers that was enacted as part of the $787 billion stimulus package passed in February 2009 and is set to expire at the end of November 2009. The program would be expanded with a $6,500 credit for homebuyers who have lived in their current residences for five years.
The IRS reports that 1.4 million people applied for the homebuyer’s credit through August 2009. The legislation would extend the program through June 2010, as long as the buyer signs a contract by the end of April 2010. It also offers a $6,500 tax credit to those who have lived in their current residence at least five years.
The measure doubles the income ceiling for eligible individuals to $125,000. Homes must cost less than $800,000 to qualify.