Senate Approves Tax Credit Increases To $15,000.00

By
Real Estate Agent with Remax Professionals Laurel MD

Senate Unanimously Approves Isakson Amendment to Stimulate Housing Market
Homebuyer Tax Credit Revived Market in 1975 and Would Work Today

WASHINGTON - The U.S. Senate today unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation's declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.

"It is time to fix America's problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous," Isakson said. "We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment."

Specifically, Isakson's amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation's enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

Isakson has pushed hard for a non-repayable tax credit for homebuyers because he knows that it will work. In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction.  Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.

Last year, Isakson introduced legislation to specifically target those homes that were causing the unprecedented increase in housing inventory by offering tax credits to individuals purchasing a foreclosed home or a home where foreclosure is pending. In April 2008, the Senate passed legislation to stimulate the nation's declining housing market that included Isakson's proposal. However, the final version of the legislation that was signed into law included only a $7,500 tax credit for first-time homebuyers that must be repaid over a 15-year period. Isakson's amendment that passed today would sunset that $7,500 tax credit.

Isakson spent more than three decades in the real estate business, beginning his business career in 1967 when he opened the first Cobb County, Ga., office of a small, family-owned real estate business, Northside Realty. Isakson later served as president of Northside for 20 years, presiding over the company's growth into the largest independent residential real estate brokerage company in the Southeast and one of the largest in America.

Isakson has not made a decision regarding his vote on the overall economic stimulus legislation.

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E-mail: http://isakson.senate.gov/contact.cfm

For more information on your Maryland real estate needs visit,  Maryland real estate.

I want to Thank Loan officer Alan Gross for sending this press release to me.

Alan Gross
National City Mortgage
702 Russell Ave. Suite 305
Gaithersburg, MD 20877-2606
(301) 353-9360
mtginfo@aol.com
www.mtg-info.net

 

Posted by
I have been selling Laurel Md real estate for over 20 years.  I enjoy working with both buyer sand sellers.  
I have knowledge of numberous first time home buyer programs. I look forward to helping you find your
Laurel Md home.
 

Brien Berard

Remax Professionals

www.mymarylandcastle.com

brienberard@mymarylandcastle.com

301-604-0198

   
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Tags:
stimulus package
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first time home buyer
15
000 tax credit
7500 tax credit

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Rainmaker
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Alan Gross
PrimeLending, A PlainsCapital Company - Bethesda, MD

This is an important amendment to the financial stimulus package. I'm sure it will be publicized by the news media and should stimulate sales.

Thanks for the recognition.

Feb 05, 2009 02:35 PM #1
Rainer
29,656
Jay Williams
Greenville, NC - Greenville, NC
Mortgage Loan Officer - Getting You The Right Loan

Brien, this will be a shining light in the stimulus package if enacted. Increase of the credit and no repayment and applicable to all home buyers will be positive.

Jay

 

Feb 05, 2009 03:06 PM #2
Rainmaker
622,713
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Brien, Hopefully this will be a great benefit to the housing market.  I read about this, but couldn't find an article as extensive as yours to read some of the details.  Thanks for filling us in!

Feb 05, 2009 05:47 PM #3
Anonymous
Anonymous
zach

so what happens if you have already filed your taxes will you be able to get the extra 7500?

Feb 06, 2009 10:00 AM #4
Rainer
97,844
Lara O'Keefe
North Texas Home Finders - McKinney, TX

Brien, I really hope that this makes it through the legislature. It seems like a great way to get the housing market back on track!

Feb 10, 2009 05:29 PM #5
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Rainmaker
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Brien Berard

Maryland Real Estate Agents - Laurel Real Estate
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