Forbes Applauds Passage of Bill Mirroring His Proposal to Extend Homebuyer Credits to Deployed Military Members
Congressman J. Randy Forbes (VA-04) today applauded the passage of H.R. 3590, the Service Members Home Ownership Tax Act. H.R. 3590 mirrors the Bring Assistance to Heroes (BAH) Act, introduced by Forbes, 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 legislation would also waive the recapture requirement for service members called to deploy after purchasing.
Congressman Forbes introduced the BAH Act in July 2009, where it was referred to the House Committee on Ways and Means. Ways and Means Chairman Charles Rangel (D-NY) introduced similar legislation last month.
“We owe a debt of gratitude to the men and women serving in our Armed Forces, yet often times they are unable to take part in unique opportunities at home due to extended service overseas. Extending this tax credit ensures that our military men and women have the same opportunity to achieve the American dream as other citizens. I am pleased that Rep. Rangel included this important legislation as a part of the Service Membership Home Ownership Tax Act,” 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. H.R. 3590 would modify the first-time homebuyers' tax credit for members of the armed forces and certain other federal employees 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. H.R. 3590 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.