New tax credit for home buyers?

While Congress continues to debate the merits of the new Economic Stimulus Package, here is a message that our Real Estate Board office sent us last week. Although this tax credit may not make it into the final package fully intact, we're all keeping our fingers crossed that our clients will benefit from some form of an improved tax credit:

From: NAR Government Affairs

RE: Senate Action on Stimulus Bill

Date: 5 February 2008

Last evening the United States Senate unanimously passed a bipartisan amendment, offered by REALTOR Champions, Senators Johnny Isakson (R-GA) and Joe Lieberman (ID-CT) to the Economic Stimulus Bill, creating a $15,000 tax credit to individuals who purchase a home in the next year.

Specifically, the Isakson-Lieberman 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 legislations 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 principle 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.

While the final details of the Stimulus Bill are still being debated, this amendment represents a tremendous step forward in NAR's efforts to stabilize housing markets around the nation. Because of the efforts of REALTORS, we expect the final Economic Stimulus Bill will contain several major housing provisions. We will continue to update you as the bill progresses through the legislative process.



Greater Gateway Association of REALTORS
10 Ginger Creek Parkway
Glen Carbon, IL 62034
P: 618-692-8300 | F: 618-692-8307
www.gatewayrealtors.com