HOMEBUYER TAX CREDIT EXPANDED; EXTENDED TO APRIL 2010

CHARLESTON, SC—(November 6, 2009) The deadline for buyers to take advantage of the first-time homebuyer tax credit has been extended to April 30, 2010 and new provisions have been added to include a credit for existing homeowners.

An $8,000 tax credit is available to first-time homebuyers. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years prior to purchase to meet first-time homebuyer definition. A $6,500 credit is available to homebuyers who have owned and lived in that home for 5 consecutive years of the last 8 years.

Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence and has a purchase price of less than $800,000.

The full amount of credit is available for individuals with adjusted gross income of no more than $125,000 or joint gross income of no more than $225,000. The credit is phased out to lower amounts for individuals and joint filers with higher gross incomes.

The previous agreement required that buyers close on their home by November 30 to qualify for the credit. The expanded agreement gives buyers until April 30, 2010 to ratify a contract and requires that the closing take place within 60 days. The existing home buyer tax credit takes effect immediately, which means all qualified buyers under the new law with an upcoming closing is eligible for the credit as well.

“The Charleston market has maintained a strong momentum coming out of the summer season—due in large part to the tax credit—and we cannot let this momentum lag. This crucial expansion allows all homebuyers to make an investment in a market that is more affordable than it’s been in years” said Ralph Wetherell, President of the Charleston Trident Association of REALTORS®.

The tax credit, in its original form, helped to establish more than one million families as new homeowners.

“The homebuyer tax credit has been a critical component to restoring the health of the Charleston real estate market. We’ve been showing signs of a recovering market since this summer—inventory is decreasing and prices continue to stabilize. Extending this credit, not just in timeframe, but to a new group of homeowners will certainly support the continued economic recovery of our area” said Wetherell.

Contact:
Meghan Weinreich
(o) 843.760.9400 x110 (c) 843.270.4393

With nearly 4,000 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com



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UPDATE: Homebuyer Tax Credit Passes; Still Pending President Obama's Signature

Congress Passes Homebuyer Tax Credit Extension and Expansion.

Today the United States House of Representatives, by a vote of 430-12, joined the Senate in passing the Unemployment Insurance Bill, which contains the Homebuyer Tax Credit extension and expansion.

The bill now goes to the President for his signature, possibly tomorrow.

Homebuyer Tax Credit Extension Fact Sheet below:

SENATE CLEARS NEW HOMEBUYER TAX CREDIT

Homebuyer Tax Credit: Congress Gives New Buyers A $6,500 Break
STEPHEN OHLEMACHER 11/ 5/09 07:53 AM AP

WASHINGTON — Buying a home is about to get cheaper for a whole new crop of homebuyers – $6,500 cheaper.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House could vote on the bill as early as Thursday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers – or anyone who hasn't owned a home in the last three years – would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

"We are still in a world of economic hurt, and Congress must continue to act boldly and creatively," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "With the right mix of tax breaks and investments we will get through this recession and get folks working again."

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

"For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home," Bond said. "And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place."

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break – for companies with revenues of $15 million or less – in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

"It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns," said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

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The bill is H.R. 3548.



Read more at: http://www.huffingtonpost.com/2009/11/05/homebuyer-tax-credit-cong_n_346632.html&cp

BAILED OUT BANKS DOUBLE CREDIT CARD RATES

A great video segment this morning on TODAY that gives an overview on why credit card rates are increasing so dramatically and what you can do about it.

Visit msnbc.com for Breaking News, World News, and News about the Economy

THE MYSTERY OF HOMEOWNER'S INSURANCE REVEALED, WELL NOT EXACTLY

Homeowner's Comparison Guide

Introduction
Homeowners insurance protects you from financial losses caused by storms, fire, theft, and other events outlined in the policy. South Carolina law does not require you to purchase homeowners insurance, but your lender may require you to have insurance if you are financing your home.

Understanding Rates
Insurance companies base your premium on factors such as the replacement cost of your home, its construction materials, the area where you live, your claims history, your credit score, and local fire protection class code.

Policy Type
Companies can sell several types of policies, each with a different level of coverage. Make sure you discuss with the agent or company, the options available to determine the policy that best fits your needs.

Before You Buy a Policy, Remember:
• In addition to cost, consider other factors, such as the company’s financial strength and complaint history.
• Coverages and limits can vary from policy to policy. Ask the agent or company for the exact coverages in the policy you are considering. Choose a policy with the coverages you need and with adequate limits to replace your house and property if they are destroyed. The amount of coverage you buy should be based on your home’s replacement (rebuilding) cost, which may be different from its market value.
• Don’t cancel a policy until you have a new policy in effect.
• Answer all questions on the application truthfully. Wrong information could result in an incorrect price quote or a denial or cancellation of coverage.

A.M. Best Rating
The South Carolina Department of Insurance requires companies to meet certain minimum financial requirements in order to be licensed to do business in South Carolina. The Department does not however provide ratings on companies. A.M. Best rates companies based upon the financial strength and operating performance of each company. Best’s ratings are subject to change and are current only as of the publication date. For current rating information, call A.M. Best at 1-908-439-2200 or visit its website at http://www.ambest.com/.

How to Find the Best Rate
• Get quotes from several companies before you buy. Include independent agents in your search. Some agents only represent a single company or company group. Independent agents may represent several companies.
• Consider higher deductibles. You can save money on your premiums by increasing your policy deductibles, but you will have to pay more out of pocket if you have a claim. You will need to have money readily available (personal savings, ability to borrow from relatives or friends, etc.) to pay your out-of-pocket expenses.
• Ask your agent about discounts. Discounts vary by company. Some companies may offer discounts if you have multiple policies with the company, an impactresistant roof, security or fire sprinkler system, a newer home, or good claims history. Other discounts may be available.

Unfair Discrimination
An insurance company cannot deny, refuse to renew, limit or charge more for coverage, or unfairly discriminate because of your race, color, religion, or national origin. A company also may not discriminate because of your age, gender, marital status, geographic location, or disability or partial disability, unless the refusal, limitation, or higher rate is based on sound underwriting or
actuarial principles. This means the company must have valid evidence that you present a greater risk for a loss than homeowners it is willing to insure. Companies may deny coverage because of the condition of the dwelling, including the plumbing, wiring, and heating and air conditioning systems.

Having Trouble Finding Insurance?
Don’t give up if a company turns you down. Continue to talk with agents in your area that represent other companies. If you are still unsuccessful in finding homeowners insurance, visit
www.doi.sc.gov/consumer or call our Consumer Services Division, a free service of the South Carolina Department of Insurance.

South Carolina Department of Insurance
1201 Main Street, Suite 1000
P. O. Box 100105 (29202)
Columbia, South Carolina 29201
803-737-6180 800-768-3467 (Toll Free Only in SC)
803-737-6231 - fax
www.doi.sc.gov
Monday through Friday
8:30a.m. to 5:00p.m.

TENTATIVE Agreement in Senate on Homebuyer Tax Credit

Homebuyer Credit Gets New Life

Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.

Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.

Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)

© Copyright 2009 Information Inc.

BOEING SELECTS NORTH CHARLESTON

Governor Sanford Welcomes Boeing to South Carolina

COMPANY ANNOUNCES 2nd PRODUCTION LINE IN NORTH CHARLESTON

Columbia, S.C. - October 28, 2009 - Gov. Mark Sanford today issued the following statement on Boeing Company’s announcement of its plan to establish a second production line for the 787 Dreamliner adjacent to the company’s existing facilities in North Charleston.

"Boeing's decision to expand their presence in our state with an infusion of jobs and capital investment - the largest announcement in South Carolina history - represents not only enormously good news for our state’s economy, but also a telling dividend from our state's continued efforts to better our business climate. For us, that means lowering taxes, easing regulatory burdens in our state’s tort and workers’ compensation systems, and keeping South Carolina a right-to-work state," Gov. Sanford said. "I'd first and foremost applaud the hardworking Boeing employees already in the Lowcountry for both their day-to-day efforts and their confidence in Boeing’s management, and in the same way I'd thank Boeing - and in particular Chairman Jim McNerney - for returning that vote of confidence in our state.

"Just as the similarly monumental BMW investment catalyzed a now extensive automotive presence across South Carolina more than 15 years ago, we believe Boeing landing decisively in North Charleston will spur on an already growing aerospace hub in our state. Also just like BMW, Roche, or the Global Aeronautica investment that led to Boeing’s foothold in South Carolina only four years ago, this project required a team effort from dedicated leaders in both the private and public sectors. Accordingly, I'd single out a few heroes in this process:

"First, I’d offer our and the state’s appreciation to Commerce Secretary Joe Taylor and Senator Hugh Leatherman, who worked side-by-side on this matter, and whose work was complemented by Jack Ellenburg and Daniel Young. Legislative leadership was similarly vital - and decisive - in Boeing’s commitment to South Carolina, and accordingly, I’d especially credit Senate President Pro Tempore Glenn McConnell and Speaker Bobby Harrell, along with Senator Leatherman, for the legislative yeoman’s work they’ve done. I would also thank people at the local level like David Ginn, Steve Dykes and Heyward Horton. Lastly, but certainly not least, I’d give real credit to U.S. Senator Lindsey Graham for his invaluable efforts along the way. With all that said, we look forward to welcoming the Boeing team to South Carolina."

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--Benjamin D. Fox

Communications Director

Office of Gov. Mark Sanford

(803) 734.0076 - work

(803) 269.7959 - mobile

(803) 734.5167 - fax