Tax Credit Extension
Senator Johnny Isakson has introduced legislation that would extend and enhance the current first time home buyers tax credit. Senator Isakson is a Republican from Georgia and a former real estate professional.
Under the terms of this bill, the amount of the credit would expand from the previous $8,000 to a maximum of $15,000 and the credit could be taken by anyone who buys a primary residence, instead of just first time home buyers.
In addition, the bill calls for removing the income limits which has prevented individuals making more than $75,000 a year from being able to claim the tax credit. The bill also sets a time frame of one year after the date of the bill’s enactment for buyers to take advantage of this new tax credit.
This bill is aimed at the “move-up” home buyers, as well as the “first time” home buyers.
As with all bills, there are those who support this new bill and there are those who are against it.
Option by lawmakers would stem from the fact that they realize that the general public is growing increasingly frustrated with federal bailouts and massive government spending. Isakson states that his bill would cost approximately $32 billion over one year.
On the other hand there are those who understand the importance that a rebound in real estate sales is to our economic growth and the extended and expanded tax credit is viewed as a way to kick start that growth.
At least this tax credit seems to be more fair by assisting a broader group of home buyers.
There are a number of economic factors (rising or declinging mortgage rates, sharp drop on increase in housing or economic data, economy continues to struggle) that could swing the pendilum in favor or against this new bill.
Stay tuned for more updates……