5K First Time Home Buyers DC Tax Credit Is BACK!

I was catching up on my reading when I saw the post about the tax credit on We Love DC.  This is excellent news because it's retroactive in 2010 (HURAH!) and for all of 2011.  I'm assuming the 5K tax credit will only apply to purchasers AFTER the national tax credit expired April 30th.  That's generally how it works but I'm not 100% certain.  As I find out more info, I'll post details.

Update:  Rep. Elenore Holmes posted this update on her website on 12/14/10:

With Home Prices Low and Unemployment High, Norton Gets Her D.C. Tax Incentives to President for Signature

December 17, 2010

WASHINGTON, DC -- The Office of Congresswoman Eleanor Holmes Norton (D-DC) announced that the tax relief and unemployment package passed by the House late yesterday, includes a two-year extension of Norton's popular tax incentives which uniquely apply to D.C. residents and businesses. The D.C. tax incentives include Norton's popular $5,000 homebuyer tax credit, and business incentives, including a $3,000 wage credit for each D.C. resident hired by, or already employed at, many D.C. businesses.  The incentives will be retroactive for 2010 and will continue through 2011.  The bill, which passed the Senate earlier this week, is being signed by the President today.

"We got our D.C. tax incentives approved by both houses earlier in the year but needed a vehicle to get them out," Norton said.  "Last night's bill was our last chance to get it done, and it worked."

The Congresswoman put special priority on her D.C. tax incentives this year because they can give a lift to businesses, residents, and the D.C. economy alike.  Residents who purchased homes this year or buy next year will find that home prices are lower than usual, making it a good time to buy homes.  The bill also contains a number of helpful incentives for D.C. businesses.  The wage credit not only helps businesses but offers them a break if they hire or retain D.C. residents.

"The wage credit is particularly helpful today.  Any hiring being done in D.C. needs to focus on residents, and considering competition from applicants from the region, the tax credit is essentially a bonus for hiring D.C. residents a deterrent to laying them off."

Other business tax incentives include a zero percent capital gains rate on the sale or exchange of certain business stock, partnership interests and business property held for more than five years; and certain tax-exempt bonds.

Norton also got to vote in the Committee of the Whole on an amendment to the bill to provide two years of estate tax relief at 2009 levels.  Norton joined most of her Democratic colleagues in voting to remove the egregious estate tax provisions in the bill that benefited the wealthiest Americans.  This bill gave way too many benefits to the rich, and the amendment was an opportunity to make the bill more equitable.  However, the bill did contain many important benefits for the middle class and unemployed workers, including a year-long extension of unemployment benefits, a two-year extension of the Bush-era middle-class tax cuts, and an expanded Child Tax Credit and Earned Income Tax Credit, which is the only reason it passed.

The Congresswoman is seeking to retain her Committee of the Whole vote in the rules for the next Congress to be written by the new Republican majority.