$15,000 Housing Stimulus Package Still in Jeopardy

 

http://www.cnbc.com//id/15840232?video=1028931562&play=1

 

At this time there is not a lot of detail provided about the bill.  There is a firm commitment to housing and KJ Premier will blog later to update you on any breaking news about the stimulus bill.

Home Buyer Tax Credit Still in Jeopardy

The Senate just passed the Economic Stimulus bill; it includes the $15,000 tax credit provision.   However, we face an uphill battle to keep it in the final package.  A conference committee has been convened so House and Senate members can negotiate a compromise between the House and Senate versions of the bill.  They expect to complete that process by this weekend. 

There is a strong push to eliminate or drastically scale back the home buyer tax credit.  Several newspapers have editorialized against it and a number of interest groups have voiced their opposition.

If you have not yet called your House and Senate members – NOW is your last chance!  If you have responded before, please do so again – do not assume they remember your calls or emails.  Please call and keep calling until you get a hold of someone.

Explain the urgent need for a meaningful homebuyer tax credit.  What does that mean?

• It must be substantial – the $7,500 House version isn’t enough; it must be closer to the Senate’s $15,000 level to be effective.
• It must be refundable to the tax payer – it should not be limited to an offset of taxes due.  The full credit should be available to the taxpayer as a tax refund; this will make it meaningful to buyers at lower income levels with lower federal tax liability.
• It should not be limited to first time buyers – first time buyers are a small percentage of the overall marketplace, if we are going to fix housing the entire housing market must be included.

Please do everything you can to get a commitment from your elected officials that they will support a strong housing credit which meets these criteria.

Here are a few things you can do:

• Click here to send a letter.
• You can also call your Senators’ offices. Click here for a directory of Senate phone numbers.

It’s now or never;  let’s make our voices heard.

$15,000 Home Buyer Stimulus Package Update

Tomorrow’s the day, and there’s a ton of interest in what’s going on with this part of the Stimulus Package.  We thought that this entry from the Wall Street Journal blog would be great to help answer some questions about what’s on the table.  Keep checking back to our blog as we will keep you updated with any new information pertaining to the housing tax credit.  Please do not hesitate to contact us at kjpremier@atproperties.com if you have any specific questions.

 http://blogs.wsj.com/developments/2009/02/09/faq-senate-stimulus-bills-home-buyer-tax-credit/

Update on the first time buyer $7500 Tax Credit!

Not only will this change help buyers, but the goal is to stimulate the entire Housing Market!  Buying will occur thus lowering our inventory and selling your house!  This new change effects all buyers, buying a primary residence in the next year!  Not just first time buyers.  This stimulus plan is about to do great things.  See the full article here from the NY Times!

 Last evening the United States Senate unanimously passed a bipartisan amendment, offered by REALTOR® Champions, Senators Johnny Isakson (R-GA) and Joe Lieberman (ID-CT) to the Economic Stimulus Bill creating a $15,000 tax credit to individuals who purchase a home in the next year.

 

 

Specifically, the Isakson-Lieberman amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

 

 

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

 

 

While the final details of the Stimulus Bill are still being debated, this amendment represents a tremendous step forward in NAR’s efforts to stabilize housing markets around the nation.  Because of the efforts of REALTORS®, we expect the final Economic Stimulus Bill will contain several major housing provisions.  We will continue to update you as the bill progresses through the legislative process.

For answers to your questions or to get started in stimulating the economy, contact us today at kjpremier@atproperties.com.