WASHINGTON, DC- Congressman Bright sponsored a bill to extend and modify the first-time homebuyer’s tax credit today.  H.R. 3825, the Helping Homebuyers Act of 2009, would expand the successful tax credit to the purchase of a primary residence rather than only first-time homebuyers.  It also increases the credit from the current $8,000 to 15% of the value of the home, with a maximum of an $18,000 credit.  Additionally, it would double the maximum income for homebuyer’s from $75,000 for individuals and $150,000 for couples to $150,000 for individuals to $300,000 for couples. 

“The first-time homebuyer’s tax credit has been a successful economic stimulus and has helped stabilize a volatile housing market,” Bright said.  “Realtors and homebuyers in my district have expressed strong support for the credit and I urge Congress to act before it expires in just a few short weeks.  My bill will not only extend the credit for a year, but expand it so more people can take advantage of it.  Doing so will not only help more people purchase a home and stabilize the market, it will also put more money in the hands of American citizens and give the economy a needed boost.” 

Below is a comparison of the current homebuyer’s tax credit, which was enacted in the stimulus earlier this year, and H.R. 3825.

Amount

Current:  10% of the value of the home, with a max at $8,000                                             

H.R. 3825:  15% of the value of the home, with a max at $18,000

Availability

Current:  First-time homebuyers

H.R. 3825:  Purchasers of primary residences

Income Eligibility

Current:  $75,000 individually or $150,000 as a couple

H.R. 3825:  $150,000 individually or $300,000 as a couple

Expiration

Current:  December 1, 2009

H.R. 3825:  One-year after the legislation is enacted

Residency Requirements

Current:  If the homeowner sells the property within 36 months (3 years) of purchase, he or she must repay the tax credit.

H.R. 3825:  If the homeowner sells the property within 60 months (5 years) of purchase, he or she must repay the tax credit.

Period for Tax Credit

Current:  One-time credit, max of $8,000 on current or previous year’s taxes

H.R. 3825:  If the purchaser chooses, he or she may spread the credit out over two years instead of only in the current year

Last week, Congressman Bright supported a bill that will extend the tax credit to certain service members and government officials deployed overseas who are currently unable to access the credit.

A pdf copy of the Helping Homebuyers Act of 2009 is attached.