Congress Looks to Extend Home Buyer Tax Credit

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As we wrote about here, the current $8000 tax credit is quickly approaching its end, but there is a new bill being considered in Congress that would expand and extend the current credit greatly.

HR 2801, The Home Ownership Moves the Economy (HOME) Act of 2009 would extend the availability of the credit through 2010, expand it to include all home buyers, not just first timers, and would also remove the income restrictions of the current credit. Currently, the buyers must not make more than $75,000 if single or $150,000 for couples filing jointly, and there is a reduction in the credit for buyers with incomes up to $95,000 and $170,000, respectively.

Introduced by Rep. Howard Coble, R-NC, the bill is currently in front of the House Ways and Means Committee and if it passed by the House, it will then go to the Senate for review and passage before it is signed into law. Of course, nothing is certain at this point; the recent talk of extending the tax credit to $15,000 (S. 1230) has seen no traction and appears dead (see the widget in our sidebar to the right). There are two other similar bills before the House Ways and Means Committee: HR 2606, which is virtually identical to HR 2801, and HR 2905, which is also similar except that it seeks to extend the tax credit through 2011 instead of 2010. Both of these bills seem to be still active, but not much activity has been seen on them.

While we’re wondering where the additional money to fund the extended credit would come from, it would most likely be worth it if it continues to stimulate the housing market, as many experts feel it will. The current tax credit has brought many first time home buyers off the fence to purchase homes in the lower price ranges, hopefully if the extension is passed it will generate new business.

Here’s a widget that will track the status of the bill as it travels through the Hallowed Halls of Washington:

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Remember, passage of this bill is far from a sure thing and certainly won’t happen tomorrow, but we’ll remain optimistic that it will eventually become law.

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Comments

  1. Post
    Author
  2. Garreth Wilcock

    Interesting article about the potential for extending the tax credit deadline. All of the bills seem to be dead as you say. Part of me thinks that if you’re trying to stimulate things with an “offer ends soon” approach, it wouldn’t help to publicly say “offer might not end soon – we’re looking into it”!
    .-= Garreth Wilcock´s last blog ..Austin Mortgage Rates =-.

  3. Post
    Author
    The Harriman Team

    Thanks for stopping by, Garreth. We weren’t really trying to stimulate anything (we’re VERY busy!), just trying to provide information about the tax credit in its various permutations. Most people don’t even know about those other bills in Congress, and the longer they stay in committee the quicker people will forget all about them. We’re just watching to see what happens.

  4. JUSTIN

    Yet another way to fuck over the dumbasses like me who foolishly bought a house and accepted the $7500.

    While I pay mine back for the next 15 years, I will think of all those who got to keep theirs and buy the same house I did a hell of a lot cheaper..

  5. Post
    Author
    The Harriman Team

    Justin, don’t be so hard on yourself. I’m sure you did what you thought was best for you and your family at the time. Instead of thinking of all the people who got or will get the $8000 credit and who paid less for their home, think of all the less fortunate ones who are upside down on their home or, even worse, no longer have a home at all. All our best to you!

  6. Dave

    I wish Congress would decide to punish real estate agents who sold my wife a home with the tax credit as a selling point, even though as it turns out we don’t really qualify now because I owned a home with in 3 months of the lame 3 year ownership period rule…since we’re married she’s being penalized because I owned a home in a past chapter of my life. What a crock.

  7. Post
    Author
    The Harriman Team

    My apologies if you were misinformed, you should have been fully advised as to the qualifications for receiving the tax credit. The guidelines are clear, and if your Realtor told you that you qualified for the credit when you really didn’t just to sell you the home, you may want to talk to an attorney. While you’re throwing blame around, you might want to save some for Congress. They’re the ones who passed the tax credit in the first place, and by doing so they have virtually assured us, and our children, of years of federal deficit that we will have to repay via higher taxes. Just one more example of government making things worse by trying to make things better…

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