In an effort to break to the logjam in the residential real estate market, a new amendment to the economic stimulus package was approved on February 4th. The amendment, proposed by U.S. Senator Johnny Isakson, R-GA, would increase the current tax credit of $7,500 to $15,000.
Here are some of the features of the amendment:
The amendment would provide a direct tax credit of 10% of the purchase price up to a maximum of $15,000 for the purchase of a home.
The property purchased must be used as a primary residence.
The credit would allow taxpayers to claim the credit on their 2008 tax return.
Under the amendment the tax credit would have to be repaid if the home is sold within two years of the purchase.
Purchases would have to be made within one year of the legislation’s enactment.
The tax credit will not be limited just to first time home buyers, and
the legislation would sunset the current $7,500 housing tax credit.
“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.”
— Sen. Johnny Isakson
This is a huge step in moving toward the stabilization of the residential real estate market. I’ll keep you posted on new developments.
