Tax-credit decision down to the wire
Isakson signs onto bill to extend, not expand, credit for first-time buyers
By Inman News, Friday, September 18, 2009.Sen. Johnny Isakson -- a former real estate broker known for taking up industry causes -- has signed onto a bill that would extend, but not expand, the current $8,000 tax credit for first-time homebuyers, which is set to expire Nov. 30.
Isakson, a Georgia Republican, had previously introduced a bill that would nearly double the tax credit's ceiling to $15,000, and expand the pool of those eligible to claim it by lifting first-time homebuyer and income restrictions.
That bill, S 1230, has 16 co-sponsors, including Sen. Chris Dodd, D-Conn., the chair of the Senate Banking Committee. It would be in effect for one year after enactment.
Isakson introduced a similar bill last year, which the Congressional Budget Office estimated would cost $34.2 billion.
Housing industry groups are lobbying hard for a tax credit that's not limited to first-time homebuyers. The National Association of Realtors claims the existing tax credit has brought 1.2 million new buyers into the market, 350,000 of whom would not have purchased a home otherwise.
But the cost of expanding the credit -- or even extending the existing one -- remains a concern to many lawmakers.
The Obama administration has yet to signal its support for an extension. A White House spokesman said this week that the president's economic team is evaluating the tax credit's impact on home sales, and will make a recommendation to the president.
Seeing the potential need for a compromise, Isakson this week signed onto another bill, S 1678, that would take the less ambitious step of simply extending the existing tax credit to June 1, 2010. ...CONTINUED
All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.
You must login or register to post a comment.
Submitted by Bruce Hahn on September 18, 2009 - 1:58pm.
American Homeowners Grassroots Alliance
By signing on to the new bill, Senator Isakson is esentially abandoning his old bill. While we believe his original bill is preferable because there's a lot of distressed properties in the pipeline and a bigger "kick" is in order, we shouldn't hold that against him.
The Senate Majority leader, Harry Reid, is supporting the new bill. It's a signal that Reid doesn't think Isakson's bill can command enough votes to pass, even though you would think Reid would be glad to support it, given how bad the Las Vegas market is. Isakson's support for the new bill is most likely a pragmatic decision - Reid's influence is critical, so take what you can get and don't let the perfect be the enemy of the good.
We agree with that philosophy. Better to get an extension of the current credit that lose both in a fight over supporters.
Bruce Hahn
President
American Homeowners Grassroots Alliance
Submitted by Amanda Hall on September 18, 2009 - 2:54pm.
As of this date, we need until June 2010 for short sale approvals. Buyers are bailing out in fear that the banks won't respond soon enough with deal approvals and traditional retail inventory is weak. The industry needs to take what it can get - extension of the credit is a must.
Amanda Hall - Broker
Hall Team Homes
Dallas/Fort Worth, Texas
817-239-9387 - direct
amanda@brokeramanda.com
Submitted by Bill Fooks on September 19, 2009 - 4:55am.
Bill Fooks
TFT realty Marketing Service
Warwick, RI http://www.fooksteam.com
The tax credit seems fine. You and I are paying for it in the long run. I feel we should extend the credit, but have it repaid at tax time by dividing the credit for 10 year, have one tenth of the credit added to the taxes due at income tax time. Most people get refunded more then this, and it would become revenue neutral. How does this sound to all.