Is The $15,000 Tax Credit For Homebuyers Alive Again?

On June 10, 2009 Johnny Isakson, R-Ga, introduced legislation that would expand the current $8,000 tax credit for first time homebuyers. The new legislation would increase the maximum amount of the tax credit from $8,000 to $15,000. Unlike the current tax credit, it would not be limited to first-time homebuyers. The proposed legislation would also eliminate  the current income caps of $75,000 for an individual and $150,000 for married couples. The legislation would also extend the tax credit which currently expires on December 1, 2009 to one year from the date of enactment and would allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010.

"The first-time homebuyer tax credit has made a difference. First-time home buyers used it and the market stabilized, but we don't have a recession in first-time home buyers. We have a recession in the move-up market," Isakson said. "One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can."

"The man who is transferred from Missouri to Georgia can't sell his house in Missouri, can't come to Georgia and can't take the transfer. His employer can't afford to buy the house and hold it for him because of the proliferation of inventory that is owned," Isakson said. "Today, in the United States, one in two sales made every day is a short sale or a foreclosure. That is an unhealthy market, and it is continuing to precipitate a downward spiral in values, loss of equity by the American people and a protracted, difficult economic time for our country."

The proposed legislation immediately picked up a bipartisan group of co-sponsors for his legislation, including Senators Lamar Alexander, R-Tenn., Jim Bunning, R-Ky., Saxby Chambliss, R-Ga., Chris Dodd, D-Conn., John Ensign, R-Nev., Joe Lieberman, ID-Conn., Lisa Murkowski, R-Alaska, James Risch, R-Idaho, and David Vitter, R-La.

To view the press release: Isakson Continues Push to Stimulate Housing Market

This legislation could have positive effect on real estate sales in 2009 and 2010. I will continue to monitor the progress of the legislation and keep you posted on it's progress.

Call me with any questions you have concerning the current market.

Alan Gross
Home Office 301.353.9360
www.mtg-info.net
mtginfo@aol.com