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Our own Georgia Senator, Johnny Isakson, has introduced a bill to give almost ALL new home buyers (not just first time home buyers, but the home must be a primary residence so this isn't for the investors out there)  a significant tax break.  Mr. Isakson was a former realtor, and had first hand experience with a similar "housing crisis" in the 1970s.  The good news is that the Senate passed his proposed bill on February 4, 2009, and there are special provisions in the bill that will allow eligible home buyers to take the credit on their 2008 tax filing. 

In a nutshell,

• The tax credit is available for principal residence home buyers only but does not have to be your first home 
• The credit amount is to be 10% of the sales price, with a maximum credit amount of $15,000.
• The credit is available for homes purchased after the American Recovery and Reinvestment Tax Act of 2009 enactment, but there is a special provision that says that purchasers can take the credit in the 2008 tax year.
• The tax credit must be repaid if the property is sold or rented (remember, it MUST be your primary residence to qualify, so if you move out you are no longer eligible).
• The credit can be equally divided among 2 taxable years, so you can take a $7,500 credit for two consecutive years as opposed to one $15,000 credit
• This credit will be in lieu of the $7,500 tax credit that had been previously approved

Please note:  I recommend that you speak with your accountant or tax professional for additional details. 

Click here to read the actual $15,000 Tax Credit Amendment 

Click here to read the press release from the bill's sponsor (Johnny Isakson, Georgia Senator)