One of the questions we’ve gotten a lot lately here at the Arkansas Realtors® Association is whether the first-time home buyer tax credit will be extended.

Of course, we figured that the National Association of Realtors® would push for an extension of that tax credit but we’ve had no official word as of yet.

We got that official word just a bit ago. Today the NAR announced it will send out a Call to Action to members next week asking them to let their congressional representatives know of the importance of keeping the tax credit going. What’s a Call to Action? It’s a quick way for members and interested parties to directly email or fax their congressional delegation and let their voices be heard.

Of course, the current first-time home buyer tax credit expires after Nov. 30. Bear in mind that all home buyers wanting to take advantage of the current tax credit must close on their homes before Nov. 30.

Who can claim the current tax credit? A first-time home buyer, according to the IRS, is anyone who hasn’t held an ownership interest in his or her permanent residence in the past three years. Also, the full credit can be claimed by individuals making $75,000 a year or less and couples making $150,000 or less. The tax credit starts to taper off after those income limits and is gone completely at $95,000 for individuals and $190,000 for couples.

Those who qualify for the credit can claim $8,000 or 10 percent of the purchase price of a home — whichever amount is less — and will receive the credit in the form of a cash rebate on their 2009 income tax returns. Unlike last year’s $7,500 first time home-buyer tax credit, the current one does not have to be paid back so long as the recipient stays in his or her home for at least three years.

A couple of weeks ago, NAR officials said they haven’t talked much about extending the credit because they want people to take advantage of what they have now rather than waiting around and hoping a better credit will be available after Nov. 30. That makes a lot of sense as we just don’t know what — if anything — Congress might pass.

And there are a lot of options on the table, too. There are bills that will do everything from extending the current tax credit to expanding it to $15,000 and making it available to everyone — first timers and current home buyers alike — buying a primary residence. Will we get the extension, the very generous expansion, something in between or nothing at all? That’s the question, isn’t it?

Stay tuned, folks. Because the current tax credit has been directly responsible for a lot of sales, you’d better believe we’ll post more information as we get it.

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