Federal Housing Tax Credit Increased to $15,000
On Wednesday evening, the U.S. Senate unanimously approved a drastic change to the current Federal Housing Tax credit that would further help stimulate the U.S. housing market. This new amendment would include a $15,000, or 10%, tax credit to those who purchase a new 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. 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.”
– Senator Johnny Isakson, R-Ga.
Senator Isakson who was a key driving force behind pushing this amendment through, speaks from experience not only as a Senator, but also with his thirty years of experience selling real estate. Isakson was selling real estate in the mid 1970’s when the U.S. faced an all too similar housing crisis. Back then Congress passed a $2,000 tax credit for purchases of a new home as a principal residence. The result of this was swift, as home values stabilized, housing inventory dropped and the market recovered.
Unlike the $2,000 credit issued in the 70’s and the current $7,500 credit which Congress passed in April of 2008, the new amendment would allow for this credit to not be repaid and could be spread over two years. This new tax credit is expected to be signed into law by mid February.
For more information about the new Federal Housing Tax Credit visit the following links below:
Scott Schang of PorchLight Real Estate Services YouTube video “Federal Tax Credit increased to $15,000”
New York Times article “Tax Credit for Homebuyers Passes”