The Homebuyer Tax Credit is getting more support on Capitol Hill. (iStockphoto)
While the Clash for Clunkers credit program has come and gone,
the Homebuyer Tax Credit is finding a lot more support, especially
onCapitol Hill where three different proposals are being considered.
The
current First-time Homebuyer Credit will end on December 1,which
Realtors say has produced a spike in business. Unlike the 2008Housing
and Economic Recovery Act, the 2009 version does not requirethe buyer
to pay back the credit, which has made it much more popular.
Ifsome
politicians have their way, the incentives to purchase a housewill get
even better and not just for first-time buyers. Some backersof
extending the credit are attempting to tie a homebuyer tax credit toa
bill that will extend unemployment benefits 14 weeks and 20 weeks
forthose living in states with an unemployment rate of 8.5 percent
orhigher.
Here’s a look at the three proposals being lobbied for on Capitol Hill:
•The
most popular plan in real estate circles is a bi-partisan one thathas
been proposed by Senators Christopher Dodd (D-Conn.) and JohnnyIsakson
(R-Georgia). Isakson is a former real estate agent. Thisproposal
increases the credit to a maximum of $15,000 and opens it upto all
buyers and not just first-timers. It would also raise the incomelevels
so more people would qualify.
• The most recentproposal has not
been as warmly received by the real estate industry. Aproposal by
Senate Majority Leader Harry Reid (D-Nev.) and SenateFinance Committee
Chairman Max Baucus (D-Mont) would extend the currentcredit through
March 31, 2010. After that date, the $8,000 credit wouldbe reduced
$2,000 every quarter. The credit would be worth $6,000 fromApril 1
through June 30, $4,000 from July 1 through Sept. 30 and $2,000from
Oct. 1 through Dec. 31 of 2010.
• The least sexy proposal is to keep the current homebuyer credit as is but extend the deadline through June 30, 2010.
Readers: Which proposal do you think is the best for helping turn around the economy in general and the housing market in particular? —Rick Hazeltine