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Two-thirds of Americans Support Home Buyer Tax Credit

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Services for Real Estate Pros with HomeFinder.com

                                         

The Senate yesterday approved an $838 billion economic stimulus bill that includes a $15,000 homebuyer tax credit. In addition, U.S. Treasury Secretary Timothy Geithner unveiled a multitrillion-dollar financial stability plan that includes $50 billion for foreclosure prevention programs.

Officials hope that the $15k tax credit - with no repayment required - will inject some much needed life back into the housing market. The Associated Press reports that the homebuyer tax credit offered by Sen. Johnny Isakson, R-GA., would apply to any home purchased as a main residence and would cost taxpayers $19 billion.

How the tax credit works
The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time home buyers. People could claim the credit on their 2008 tax returns and it would apply to any home purchased for one year after the recovery plan becomes law.

Proponents of the new tax credit proposal believe it will encourage more people who are standing on the sidelines to purchase a home and it will help put people back to work in the housing sector building homes.

Give the people what they want
According to a recent nationwide survey conducted by the National Association of Home Builders, two-thirds of Americans support the $15,000 home buyer tax credit. The survey of more than 1,200 registered voters found that one-third of all respondents and 61 percent of renters would be more likely to buy a home if the $15,000 home buyer tax credit were to be enacted into law. David Crowe, chief economist of the National Association of Home Builders (NAHB), had said in a press release last week that in order for the tax credit to be fully affective, "Congress must make sure that the full $15,000 tax credit remains in the final stimulus package."

Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.

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Comments (4)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

includes $50 billion for foreclosure prevention programs

We don't yet know what they mean by this. 

Feb 11, 2009 01:26 AM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

I hope it stays in the bill too.  It will give a little boost to the economy.

Feb 11, 2009 01:45 AM
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

Amy:

In 1974-75 we had a very bad real estate market. The  government gave a tax credit to help the market pick up then. That and lower interest rates worked.

Richard

Feb 11, 2009 01:57 AM
Todd Maxedon
Brinkoetter and Associates - Sullivan, IL

This morning we just learned of a 8000.00 first-time buyers credit and also 8000.00 credit for any buyer. They have not made it clear if it is forgiven or must be paid back, thru taxes. This action will help buyers to make a move on a purchase, and will equally benefit sellers in traffic looking to buy. In my opinion this is one of the few things in the bill worth passing.

Feb 13, 2009 03:53 AM