With a new tax credit intended to turn around the battered housing market, federal plans to give buyers a subsidy of up to $15,000 for all home purchases is a great answer to some prayers.

Approved by the Senate on Wednesday February 4th, the new credit works like this: Buyers would get 10 percent of the purchase price of any home, up to $15,000, applied to their tax bill. For buyers who intend on occupying their homes as their main residence for atleast 2 years, consumers would be allowed to spread out the credit over two years, making it possible for those who pay less than $15,000 in taxes to benefit.

But the tax incentive is likely to be more helpful to buyers in less expensive markets. With Las Vegas’s median home price around $210k, this will most assuredly bring in a whole new set of buyers, joining the many that are already taking advantage of this buyers market.

A republican senator from Georgia (and former Real Estate Agent) Johnny Isakson, introduced the new tax credit thats modeled after a similar measure in the mid-1970s and is part of President Barack Obama’s economic stimulus package. Originally, a tax break passed last summer provided a $7,500 credit to first-time home buyers and sales of existing homes rose in December. But the first-time home buyers restriction is being lifted and the amount’s been increased up to $15,000 – making this one hell of a good time to be a buyer.

Anyone who buys a home within A YEAR of the bills signing would qualify, for both new and resale homes.

Home buyers purchasing their primary residence can take a 100 percent tax credit right on their 1040 (income tax form) for 10 percent of the purchase price, up to $15,000. So basically, that means buying a $150,000 or more home, you’d be able to take the full tax credit.

Although buyers will still face tight lending standards, and mortgage rates have climbed since hitting a record low of 4.96 percent last month, the average rate on a 30-year fixed mortgage rose to 5.25 percent this week from 5.1 percent last week – which is still very low.

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