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$15,000 Tax Credit…again…Could it really be?
June 10th, 2009 |
asheville custom homes |
indygraphics |
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Yep! I’m not kidding. The $15,000 tax credit, for all homebuyers, has come up again. And, this time, the amendment appears to have bipartisan support in the Senate. Senator Johnny Isakson, a Georgia Republican, has once again brought up this bill as an amendment. But, this time it also has the support of Senator Chris Dodd, a Connecticut Democrat, and other Democrats.
The proposed bill would increase the current $8,000 tax credit to $15,000, and would extend the credit to ALL (yes, you read that correctly), ALL homebuyers. The tax credit could be taken over two years, and would be for purchases within one year of bill passage.
If passed as written, the bill would also eliminate the income caps of $75,000 and $150,000 for a single person or married couple respectively.
Over the past several weeks, it has become increasingly obvious that the $8,000 first-time homebuyer tax credit has been overwhelmingly successful. In fact, approximately 50% of recent home sales have been to first-time homebuyers. In one of my earlier blog entries, I pointed out that this scenario is skewing the average home price numbers to the lower end; thereby making it appear that home prices are falling further than they actually are. It appears that lawmakers have taken note of this situation, and are aware that in order to stabilize the housing market, incentives need to be provided to all homebuyers, not just first-time homebuyers.
If this amendment happens to pass, this would effectively be the last “nail in the coffin” for the argument that a housing market recovery is nowhere near. Housing market stability is critical for everyone. Homeowners need stability in home values, Homeowners need to be able to rely on building equity in their homes, businesses, and of course, their employees, need the added revenue that home construction provides. And, finally, local governments desperately need the tax revenues created by housing sales and related construction activities to fund schools, roads, police, firefighters, and others.
Here’s hoping the lawmakers put politics aside this time, and do THE RIGHT THING!
For a full overview of the amendment, go to www.bloomberg.com/apps/news?pid=20601103&sid=aQmrxrzY0jfE
Steve Wallin, President
Custom Homes of Asheville