Reps. Fossella & Pascrell Unveil Bipartisan Homebuyers Tax Credit Bill
The housing crisis is at the heart of the economic slowdown that confronts our nation today. That is why Congressman Bill Pascrell (D-NJ8) and I unveiled bipartisan legislation to provide a temporary homebuyers tax credit of $10,000 in an effort to boost the housing market and spur economic growth.
A homebuyers tax credit would provide an immediate boost to restore the housing market while stabilizing prices and reducing foreclosures. In many communities, housing inventories continue to increase as home prices continue to decline – a recipe for long-term economic trouble unless we act to encourage homeownership. This bill represents a piece of the puzzle to solving the housing crisis. It will also help Americans protect the equity that they have worked so hard to build up over the years.
The legislation would apply to principle residence purchases to protect against speculative purchases, “flipping” or abuse and could be claimed only once by taxpayers. The measure, which is targeted at modest home purchases but acknowledges high-cost areas, would apply only to houses that meet the new GSE conforming loan limits passed in the Economic Stimulus Package – 125 f median home price, not to exceed $729,750. In addition, the bill includes an Alternative Minimum Tax (AMT) blocker to protect Americans who claim the credit. The tax credit would expire one year after enactment. A tax credit is a dollar-for-dollar reduction in an individual’s tax liability. For example, a taxpayer with a liability of $15,000 and a tax credit of $10,000 would be required to pay $5,000 in taxes.
This legislation is needed now more than ever because nationwide, seasonally-adjusted home sales decreased from 6.6 million in February 2007 to 5 million in February 2008 -- a decline of nearly 24 Home sales have dropped from nearly 7.1 million in 2005 to 6.48 million in 2006 (a decline of 8 Our bill is loosely modeled after the successful mid-1970s tax credit for home purchases, which is credited with reducing a record-high three-year supply of unsold houses, increasing production and boosting housing prices.
| Posted by Congressman Vito Fossella (NY - 13) (04-03-2008, 01:09 PM) filed under HRPC Member |
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