Seeking to jump-start the housing market, the Senate added new tax relief for homebuyers to its $900 billion economic stimulus bill yesterday as the legislation moved toward a final vote.
The amendment represents a significant victory for Republicans. GOP lawmakers have complained that the package includes few of their priorities for easing the economic crisis, including more help for the housing sector, which has been devastated by foreclosures and the frozen credit market.
The provision would offer a tax credit of up to $15,000 or 10% of the purchase price, for any home bought as a primary residence, for one year after the stimulus bill is signed into law. It would add $19 billion to the plan.
The housing amendment, accepted unanimously by a voice vote, also represents an effort by Democratic leaders to make the stimulus bill more appealing to Republicans -- a necessity in the Senate, where Democrats lack the 60 votes needed for final passage.
A bipartisan group of moderate senators is expected to announce an amendment today that would remove tens of billions of dollars in spending provisions that have been criticized as not being able to immediately stimulate the economy.
A final vote on the Senate package could come as early as tonight. But compromise negotiations with the House are likely to extend through next week and could prove contentious, as the Senate bill grows in some areas and contracts in others, compared with the $819 billion House package.
I have not found anything that states whether or not the tax credit will have to be paid back, like the current tax credit. I will update this information when it is definite.
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