Forbes Votes to Extend Homebuyer Tax Credits
Congressman J. Randy Forbes (VA-04) today voted in favor of H.R. 3548 to extend the $8,000 first-time homebuyer tax credits to April 30, 2010. The credits were scheduled to expire on November 30 of this year. According to the Joint Committee on Taxation, the bill is revenue neutral and paid for through a number of offsets.
“The first-time homebuyer tax credit has not only helped potential buyers move into their first homes, but it has served as a practical way to energize the housing market, triggering home sales that would not have happened otherwise. Extending the homebuyer tax credit will continue to encourage a healthy real estate market that results in new construction and a boost in consumer confidence. It is a solution that relies on investment, not deficit spending, to help build our economy,” said Forbes.
The bill would extend the $8,000 credit for first-time homebuyers who enter a sales contract by April 30, 2010, and close within 60 days. The bill would allow individuals to claim the tax credit for purchases in 2010 on their 2009 tax returns, meaning the credit would be received quickly. In addition, the bill added a $6,500 credit for current homeowners, as long as they have lived in their current homes for five consecutive years. The bill also raised the qualifying income cap from $75,000 for individuals and $150,000 for married couples, to $125,000 and $225,000, respectively. Homes more expensive than $800,000 do not qualify.
In addition, the bill extends the homebuyer tax credit deadline for service members on duty overseas to April 2011. Congressman Forbes introduced the Bring Assistance to Heroes (BAH) Act earlier this year 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. A bill mirroring Forbes’ legislation passed the House in October.
H.R. 3548 passed the House of Representatives today with a vote of 403-12. To read more about Congressman Forbes’ work on issues related to the economy, click here.