A new amendment to the economic stimulus package working it’s way through congress was unanimously approved on February 4th. The amendment proposed by U.S. Senator Johnny Isakson, R-Ga. would increase the current “tax credit” of $7,500 to $15,000.
The amendment would provide a direct tax credit of 10% of the purchase price up to a maximum of $15,000 for the purchase of a home. The property purchased must be used as a primary residence. The credit would allow taxpayers to claim the credit on their 2008 tax return. Under the amendment the tax credit would have to be repaid if the home is sold within two years of the purchase. Purchases would have to be made within one year of the legislations enactment. The tax credit will not be limited just to first time homebuyers.
The legislation would sunset the current $7,500 housing tax credit.
“It is time to fix America’s problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said.
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