Bill Would Increase $8K Tax Credit To $15K

U.S. News & World Report's The Home Front blog reported June 12, 2009 that Georgia Republican U.S. Senator and former real estate professional Johnny Isakson filed a bill June 10, 2009 that would expand the current first-time home buyer tax credit from $8,000 to $15,000.

Besides the increased tax credit, it could be taken by anyone who buys a primary residence, instead of only by first-time home buyers.

The bill would also remove the income limits. Presently, the tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

The credit would be available for one year following the enactment under Sen. Isakson's bill.

I think the bill should be retroactive by two to three months, so it doesn't put the brakes on deals because home buyers think they'll receive an extra $7K by waiting. In addition, now that the bill has been filed, it should be voted up or down quickly, so home-buying decisions are not put on hold while the bill is pending.

“'The first-time homebuyer tax credit has made a difference,' said Isakson in a statement. 'First-time homebuyers used it and the market stabilized, but we don't have a recession in first-time home buyers. We have a recession in the move-up market. One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can.'”

Read The Home Front Post