Housing Relief Added To Federal Stimulus Bill

Housing Relief Added To Federal Stimulus Bill

Last evening the United States Senate unanimously passed a bipartisan amendment, offered by Senators Johnny Isakson (R-GA) and Joe Lieberman (IND-CT) to the Economic Stimulus Bill creating a $15,000 tax credit for 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 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 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 efforts to stabilize housing markets around the nation.