Says Republicans Have Stymied Both Bills

WASHINGTON – U.S. Rep. Benjamin L. Cardin testified today before the Ways & Means Committee to urge swift passage of the Homeownership Tax Credit, H.R. 1549, and the Research & Development Tax Credit, H.R. 1736.   Both bills have languished in the 109th Congress.

“We are in the final weeks of this Congress, and I urge my colleagues to move quickly to support R&D in this nation and to assist developers in building affordable homes so that hundreds of thousands of Americans can achieve the American Dream of homeownership,” said Rep. Cardin, a member of the Ways & Means Committee.

The R&D bill was introduced by Reps. Cardin and Nancy Johnson, R-CT, in 2005.  H.R. 1736 would expand and make permanent the research and development tax credit.
The tax credit was originally enacted in 1981 and has led to the development of life-saving drugs and medical treatments, cutting-edge computers and software, and technologies that make transportation safer and energy more efficient.  It was last extended in 2004 and was allowed to lapse at the end of 2005. 

“R&D is the engine that drives economic growth and helps create new, high-level jobs in our nation.   It is important that we make this credit permanent so that companies can plan long-term R&D projects that will lead to the development of important new products, and in turn, good paying jobs,” said Rep. Cardin, senior Democrat on the Trade Subcommittee.

The Congressman also urged House passage of the Renewing the Dream Tax Credit Act, H.R. 1549, bipartisan legislation that he introduced to provide a homeownership tax credit to encourage the construction and rehabilitation of homes for low-and middle-income families in economically depressed areas.  It is estimated that the measure would enable 50,000 Americans to achieve the American dream of homeownership each year.

H.R. 1549 is designed to bridge the gap between the cost of developing homes in economically distressed areas and the price at which such homes can be sold to low- and moderate-income buyers.  It is modeled after the successful low-income rental housing tax credit, and it allows states to allocate federal tax credits to developers and investors who provide single-family homes to qualified buyers in qualified areas.

“Studies show that homeownership encourages personal responsibility, promotes economic security and gives families a greater stake in their communities.  In addition to spurring homeownership, it will generate an estimated $2 billion of private equity investment, $6 billion of development activity, and 122,000 jobs each year,” said Rep. Cardin.

H.R. 1549 has earned the strong support of 40 organizations, including the National Association of Home Builders, the National Conference of State Housing Agencies, the National Association o Realtors, the Enterprise Foundation, the Location Initiative Support Corporation and Habitat for Humanity International.

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