Home Buyer Tax Credit Key to Reviving Housing
With only three legislative weeks remaining before the Independence Day congressional recess, NAHB continued its push for swift enactment of comprehensive housing legislation. To drive home the need for immediate congressional action, NAHB First Vice President Joe Robson on June 5 called on Congress to create a temporary home buyer tax credit along with other important tax measures to boost the faltering housing market and economy. Testifying before the House Small Business Committee, Robson said, "House prices and inventories obviously are central to the outlook for the economy and the financial markets. Policies that stimulate home purchases in the immediate future can pay huge dividends and a temporary home buyer tax credit provides the most bang for the buck. Each month, more and more Americans are losing their jobs and homes. Congress must move quickly to adopt a final housing stimulus package."
 Robson added that the recent revival of interest among prospective buyers suggests that temporary credits could stimulate a wave of home buying that could quickly reduce excess supply in housing markets and halt the dangerous erosion of house prices and mortgage credit quality. H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008, contains a provision that would provide a temporary, first-time home buyer tax credit of $7,500 for the purchase of any home used as a principal residence and closed on between April 9, 2008 and April 1, 2009.
“NAHB believes that the home buyer credit model in H.R. 3221 would help address many elements of the current housing crisis,” said Robson. “The tax credit would increase home sales, which would cause inventories to fall and stabilize home prices and mortgage markets. NAHB would urge Congress to consider options for increasing the size of the credit to maximize its impact and effectiveness.”
In crafting a final housing bill, Robson also urged lawmakers to incorporate the following tax provisions to achieve a comprehensive solution to the housing crisis: expansion of the mortgage revenue bond program, modernization of the Low Income Housing Tax Credit and expansion of the net operating loss deduction carryback. For more information, contact Greg Brown at 800-368-5242, x8421.
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