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Washington, D.C., Aug 3, 2009 - Congressman J. Randy Forbes (VA-04) announced today that he has introduced a bill to extend the 2009 first-time homebuyer tax credit for one year to any service member that has served on extended duty overseas during the first 11 months of 2009. The Bring Assistance to Heroes (BAH) Act, H.R. 3389, would also waive the recapture requirement for service members called to deploy after purchasing a home.  

“Many sacrifices are made by our men and women in uniform when they are called to serve overseas for an extended period of time. It often means missing out on opportunities like the first-time homebuyer credit being offered this year, which has been a great benefit for individuals who are looking to buy their first home in the midst of a weak economy. Members of our Armed Forces who qualify for the homebuyer credit ought to be given the same opportunity to take advantage of these tax breaks when they return home. We owe a debt of gratitude to those serving our nation, and extending this credit would ensure that they have the same opportunity to achieve the American dream as other citizens,” said Forbes.  

As a part of the American Recovery and Reinvestment Act of 2009, qualifying first-time homebuyers are eligible for a tax credit up to $8,000 for homes purchased on or after January 1, 2009 and before December 1, 2009. However, for members of the Armed Forces who are stationed overseas for the duration of 2009, it is nearly impossible to take advantage of the first-time homebuyer tax credit. The BAH Act would amend title 37 of the United States Code to extend the tax credit to members of the Armed Forces on “qualified official extended duty” in 2009 until December 1, 2010. “Qualified official extended duty” is defined as service for 90 days at least 50 miles away from one’s primary duty station. 

Additionally, individuals who use the tax credit are required to own their home for at least three years or they forfeit the credit through a recapture mechanism. The BAH Act would waive the tax credit recapture for any member of the Armed Forces using the homebuyer credit who is called to qualified official extended duty during the three years for which they are required to own the home.  

The BAH Act has been referred to the House Ways and Means Committee and the House Armed Services Committee where it awaits further action. To read more about Congressman Forbes’ work for our armed forces, click here.