Concierge Service
Welcome to Signature Building Systems Concierge Service, your ultimate guide for industry resources. Whether you’re a consumer looking for information on tax credits and green building, or a builder looking for information on builder associations, this is your one stop to get connected with the organizations that can answer all of your questions. As a consumer it’s vital to educate yourself, as a builder it’s important to stay involved so be sure to check-in often to look for updates and new information. Stay involved, stay informed, and we’ll help you find the information that you require.
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- Federal Tax Credit Overview
- HUD announces revisions to first-time homebuyer tax credit
- Financial Incentives for energy efficiency and using renewable products
- Join the National Association of Home Builders
Federal Tax Credit Overview
You may be wondering what’s all the buzz about the tax credit for first-time home buyers? You may want to know how it works, who is qualified, or just gain a deeper understanding of the process and restrictions so that you can better explain the program to your customers. As you are most likely aware, this is not the first time that something like this has been done. However, the 2009 version of this incentive program is bigger, better and more beneficial to more Americans who just want to live the American Dream of home ownership. In a video taped interview, Rob Dietz, Ph.D., director of tax issues for the National Association of Home Builders, discusses the $8,000 first-time homebuyer tax credit. We felt that this is a great video to effectively and concisely answer all of the questions that everyone is asking. Who qualifies and who doesn’t? Are there limitations on types of homes or new construction? Are there income caps? Are there restrictions on joint home ownership?
Q & A on $8,000 First-Time Home Buyer Tax Credit
Q: Who is eligible to use the tax credit?
A: The $8,000 tax credit is available for first-time home buyers only. The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. All U.S. citizens who file taxes are eligible to participate in the program.Q: Are there any payback provisions?
A: The tax credit is a true credit. It does not have to be repaid. The only repayment requirement is if the home owner sold the home within three years after the purchase.Q: Are there income limits to qualify for the credit?
A: Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000. For married couples filing a joint return, the income limit doubles to $150,000. Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit. Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit. The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples with a MAGI that exceeds $170,000.Q: What are the effective dates for the tax credit?
A: First-time home buyers would receive an $8,000 tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, you must actually close on the sale of the home during this period.Q: Is the tax credit refundable?
A: Yes. A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference. For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 tax refund from the government, your refund would grow to $9,000 ($1,000 plus $8,000 from the home buyer tax credit).Q: What years can buyers apply the tax credit to their tax returns?
A: Buyers can take the tax credit on their 2008 or 2009 income tax return.Q: What types of homes qualify for the tax credit?
A: All homes, whether single-family, townhomes or condominium apartments will qualify, provided that the home will be used as a principal residence and the buyer has not owned a principal residence in the prior three years. This also includes newly-constructed homes.Q: Where can I find more details on the tax credit?
A: NAHB has a consumer Web site that provides comprehensive information on the tax credit. The Web site is www.federalhousingtaxcredit.com
HUD Announces Revisions to First-Time Homebuyer Tax Credit
At the National Association of Home Builders (NAHB) Spring Board of Directors meeting, HUD Secretary Shaun Donovan announced modifications to the Obama Administration’s homebuyer tax credit program. The Federal Housing Administration’s (FHA) changes to the program will help countless first-time homebuyers to purchase a home; thus stimulating an increase in new home sales and stabilizing the housing market across the country. In this breaking news release, it was disclosed that the FHA will allow homebuyers to apply the $8,000 credit toward the purchase costs of the home, as opposed to receiving the credit after filing a tax return as outlined in the American Recovery and Reinvestment Act of 2009. The statement details rules allowing finance agencies to “monetize” the amount of the tax credit so it can be used by the borrower for down payments, closing costs, etc. Additionally, procedures have been put in place to track finance agencies practices to minimize misuse, abuse, and exploitation. Learn More
Funding opportunities and incentives:- The Database of State Incentives for Renewables & Efficiency (DSIRE) provides a comprehensive database of state, federal, and utility incentives, rebates, and tax credits for using materials and practices that promote renewable energy and energy efficiency. The information is searchable by a number of variables, including state, technology, type of incentive, and more.
- The ENERGY STAR program includes among its many resources a listing of tax credits for consumers and homeowners, home builders, and manufacturers.
- The Green Building section of the U.S. Environmental Protection Agency (U.S. EPA) website features a directory of green building funding sources targeted for several audiences including consumers, and industry sectors.
- Be sure to consult your Local Program website; your local home building association may maintain local contacts and a directory of applicable incentive opportunities.
- The Federal Citizen Information Center offers a Energy Efficient Mortgage (EEM) Home Owner Guide, which details the benefits and opportunities of this type of financing.
- The Department of Housing and Urban Development also contains information about EEMs, and provides links to more information.
- The Residential Energy Services Network (RESNET) offers frequently asked questions and additional resources on EEMs.
Join the National Association of Home Builders
“Every man owes part of his time and money to the business or industry to which he engages. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere.” -- Theodore RooseveltKnown as “the voice of the housing industry,” NAHB represents more than 235,000 members involved in all aspects of home building and remodeling. Visit NAHB.org and in the Join NAHB section, you'll find out how to join, about the different membership types, and learn the benefits of joining. Why should you join? Because standing together, our members are a powerful force for keeping housing a national priority. To become a member of NAHB, you must join the local home builders association serving your area. When you join locally, you automatically receive membership at the state (where state associations exist) and national level. That means you get three memberships for the price of one! Contact your local association now to get started. Joining NAHB could be your best decision of the year!
