7/30/2019 $5,000 DC Homebuyer Tax Credit off the table for now

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FORIMMEDIATE RELEASE

Contact: Nikki Smith

Phone: 202.274.1517

E-mail: nikki@federaltitle.com

January 8, 2013

$5,000 DC first-time homebuyer tax credit off the table for now

First-time homeowners in the District of Columbia, who purchased their principal residence afterDec. 31, 2011, will not be able to take advantage of the popular $5,000 DC Homebuyer TaxCredit when they file taxes this year.

The tax credit that has made homebuying affordable for thousands of DC residents since it wasfirst introduced nearly 15 years ago was axed from legislation during negotiations over the fiscalcliff and was not included in the American Taxpayer Relief Act signed by President BarackObama last week, according to a spokesman for Congresswoman Eleanor Holmes Norton (D-DC).

An attempt to make the credit retroactive for 2012 purchases and extend it into 2013 wasunsuccessful, but the congresswoman is working on a plan to get the credit reinstated, he said.There's no specific plan of action or timeline in place yet.

"Due to high demand for housing and low interest rates, the DC real estate market will remain

healthy with or without the tax credit," said Federal Title founder & president Todd Ewing."Im really not surprised by the news given the current economy and that DC has one of thestrongest housing markets in the nation."Approximately 10% of Federal Title's DC real estate closings last year involved a first-timehomebuyer who took advantage of the credit, Ewing said.

In previous years a homebuyer making less than $70,000 annually who had not owned aprincipal residence in the District for a one-year period ending on the date of purchase waseligible to claim the full credit. The credit phased out for individuals making between $70,000and $90,000 (or $110,000 to $130,000 for joint filers).

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http://www.federaltitle.com/dc-tax-credithttp://www.federaltitle.com/dc-tax-credit

7/30/2019 $5,000 DC Homebuyer Tax Credit off the table for now

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The popular $5,000 DC Homebuyer Tax Credit was initially part of the Taxpayer Relief Act of1997 and has been renewed sometimes on a retroactive basis for every tax year since. Itwas most recently renewedtwo years ago through the Tax Relief, Unemployment InsuranceReauthorization and Job Creation Act of 2010. The credit was retroactive for 2010 and extendedthrough 2011 at that time.

The credit also served as the model for the $8,000 First-time Homebuyer Credit offered to first-time homebuyers by the federal government for properties purchased in 2008, 2009 and 2010.

Despite the uncertain future of the $5,000 DC Homebuyer Tax Credit, residents in the District ofColumbia still have a number of local homebuyer programs at their disposal, including theDCTax Abatement Program. Unlike the DC Homebuyer Tax Credit, there's no first-time buyer

requirement to take advantage of DC Tax Abatement, only income and purchase pricerestrictions, Ewing said."The DC Tax Abatement program is still available and actually provides much more than the

$5,000.00 tax credit," Ewing said. "Income qualifications are not that far apart, but through taxabatement you get the benefit of a 1.1% credit toward closing costs plus you dont have to payreal estate taxes for the next five years after closing."The homeownership rate in the District of Columbia was 42.8% in 2010 compared to just 28% in2000, according to U.S. Census Bureaustatistics, while median home values in DC increasedfrom $157,200 to $442,600 over the same period of time. The census statistics show DC's

median household income rose from $40,127 in 2000 to $61,835 in 2010.

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About Federal Title & Escrow Company

The largest independently owned title company serving the DC Metro Area, established in 1996,

Federal Title long ago shucked off the industry's affiliated business arrangement model for a

more pro-consumer approach. By offering a wealth of information and cutting edge technology,

by delivering competitive rates, top-notch customer service and complete transparency, Federal

Title champions and empowers homebuyers everywhere.

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