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Will the tax credit get extended?

Category: Dallas Real Estate News  |  Permalink

Published: Thursday, October 22, 2009

As you know the deadline for the first time home buyer tax credit ends December 1, 2009 (really you should be closed before then just in case there is a problem).

The government is saying that the economy is recovering but we still have a long way to go before we are out of the clear.  I believe as do many other people that extending the tax credit will help continue the growth of the economy and eventually pull us out of this recession.

I have been writing and emailing our congress and senate representatives to see what they plan on doing about the tax credit.  This is the response I received from Senator Kay Bailey Hutchison:

Dear Friend:

Thank you for contacting me regarding the housing market. I welcome your thoughts and comments.

Homeownership is an essential part of the American Dream. In recent months, Congress has taken extraordinary actions to respond to the economic downturn in an effort to spur economic growth, especially in the housing market. I believe that Congress must continue to strive to improve access to affordable housing, support community development, and increase homeownership, while not imposing an undue tax burden on Americans.

In July 2008, Congress passed H.R. 3221, the Housing and Economic Recovery Act of 2008, which included a homebuyer tax credit. This allowed first-time homebuyers to claim a tax credit of 10% of the homes value - - up to $7,500 - - for homes purchased between April 9, 2008 and June 30, 2009. Homebuyers would then repay a portion back each year over 15 years, making the credit an interest-free loan.

In February 2009, the homebuyer tax credit was revised and extended through H.R. 1, the American Recovery and Reinvestment Act of 2009. This legislation increased the available tax credit to $8,000, and extended the deadline to purchase a home to November 30, 2009. Furthermore, it stipulated that for homes bought after January 1, 2009, no repayment of the credit is required.

As the termination date of the homebuyer tax credit approaches, a number of proposals have been introduced this Congress to alter it. One such proposal, introduced by Senator Ben Cardin (D-MD) on September 16, 2009, is S. 1678, a bill that would extend the $8,000 first-time homebuyer tax credit until June 1, 2010. Another proposal is S. 1230, the Home Buyer Tax Credit Act of 2009. Introduced by Senator Johnny Isakson (R-GA) on September 10, 2009, S. 1230 would increase the homebuyer tax credit to as much as $15,000, extend the deadline to qualify for an additional year, and make it available to all homebuyers.

Both S. 1678 and S. 1230 have been referred to the Senate Committee on Finance, on which I do not serve. As Congress considers legislation to strengthen our economy and provide responsible relief to Texas homeowners come, you may be certain I will keep your views in mind.

I appreciate hearing from you, and I hope that you will not hesitate to contact me on any issue that is important to you.

Sincerely,
Kay Bailey Hutchison
United States Senator

284 Russell Senate Office Building
Washington, DC 20510
202-224-5922 (tel)
202-224-0776 (fax)
http://hutchison.senate.gov

_____________________________________________________________________________

Thanks,

The Good Home Team with Keller Williams Realty

Nick Good & Austin Good

www.TheGoodHomeTeam.com

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