An earlier post I made (When is a "tax credit" not a tax credit?) addressed the $7,500 tax credit and how the repayment clause makes it a "no interest" loan rather than a tax credit. I also mentioned that the NAR was lobbying to have the "repayment" requirement eliminated. While reading my daily NAR news, I found the article listed below:
As reported by the National Association of Realtors®:
"Ways and Means Chairman Charlie Rangel has released an outline of a $275 Billion tax package to be included in the Obama economic stimulus bill. Among its many provisions is one that would eliminate the repayment feature of the $7500 first-time homebuyer tax credit. An outline of the Senate Finance Committee package is expected shortly, as well, and is likely to also include the provision to eliminate the tax credit feature. Ways and Means markup on the bill is tentatively scheduled for January 22, 2009. The Finance Committee's deliberations will be roughly concurrent with Ways and Means.
The June 30, 2009 expiration for the credit remains intact in the Ways and Means package. NAR is working to have the effective date extended through the end of the year so that the more robust credit can have an impact. Congressman John Lewis (D-GA), a senior member of the Ways and Means Committee, has introduced H.R. 525, a bill that would extend the tax credit through December 31, 2009. NAR has sent the attached letter to every member of the Ways and Means Committee urging members to support Mr. Lewis's effort to move the effective date."
There is no doubt that the elimination of the repayment requirement on this tax credit would truly make it a "tax credit" and be another "perk" for first-time home buyers along with low interest rates and high inventories.