$15,000 first time home buyer tax credit proposed
Email Bookmark Share
PrintIntroduced by Rep. Ken Calvert (R-CA), the Homebuyer Tax Credit Act of 2009 would replace the current tax credit for first time home buyers with a one-time credit for 10% of the purchase price of a principal residence, up to $15,000. However, if the buyers fails to occupy the home or sells the home within 24 months after the purchase, the buyer is required repay the credit to the government.
In a statement released announcing the introduction of the bill, Rep. Calvert said "we must create demand in the housing market and rather than forcing down the principals of mortgages, Congress should provide monetary incentives for purchasing a home."
The Congressman's statement goes on to say that, according to the National Association of Home Builders, the $15,000 tax credit would result in nearly 500,000 additional home sales and create 255,000 new jobs in the year ahead.
David G. Kittle, Chairman of the Mortgage Bankers Association, says in a statement in support of this bill "stimulating the housing market is one of the best ways Congress can help accelerate the recovery of our national economy. Offering $15,000 to potential home buyers is a powerful incentive that I believe will jump start the housing market. "
