Senate Approved Homebuyer Tax Credit

HarpBlaster.com News Wire

WASHINGTON, Feb. 5, 2009 — The U.S. Senate unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation’s declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.

Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase, the senator said in a news release.

The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

Homeowners who purchased a house in 2008, for example, would be fleeced.

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