Home Buyer Tax Credit Initiatives

NAHB sent letters to the House and Senate this week thanking members for introducing legislation that would extend the $8,000 first-time home buyer tax credit, which is due to expire on Dec. 1. House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) recently introduced HR. 3590, the Service Members Home Ownership Tax Act of 2009. The legislation would extend the credit for one year for qualifying service members.
In a letter supporting Rangel’s effort to ensure that the home buyer tax credit is fully available to all of the men and women in service to our country, NAHB Chief Lobbyist Joseph Stanton said “we look forward to working with you to extend the credit, so it can continue to provide a much-needed boost to the economy.”

Meanwhile, Sen. Ben Cardin (D-Md.) introduced S. 1678, a bill to extend the home buyer tax credit for six months. The bipartisan measure has six co-sponsors, including Senate Majority Leader Harry Reid (D-Nev.) and Sens. Saxby Chambliss (R-Ga.), Kirsten Gillibrand (D-N.Y.), Jon Ensign (R-Nev.), Johnny Isakson (R-Ga.) and Debbie Stabenow (D-Mich.).

NAHB on Sept. 22 sent a letter to Sen. Cardin stating that S. 1678 is an “important first step in ensuring that this powerful economic incentive does not lapse as the Nov. 30, 2009 expiration date approaches. However, NAHB believes that the tax credit must be extended for an additional year and made available to all purchasers of a principal residence.” The message on the tax credit conveyed the same points that NAHB is issuing as part of its “Revive Housing, Restore America” campaign, which also seeks congressional action to resolve the credit crunch, correct a faulty appraisal process and expand the tax code’s net operating loss carry back provision for businesses to help prevent further layoffs.

An extension of the tax credit for a full year and an expansion to all purchasers of a principal residence would spur more than 383,000 additional home sales and help mitigate the resurgent foreclosure crisis, the NAHB letter to Cardin said. “Extending and expanding the credit would also create nearly 350,000 desperately-needed jobs during the coming year in many industries, including manufacturing, retail and real estate-related industries.”
There are a number of bills pending in the House and Senate that seek to extend and enhance the home buyer tax credit. NAHB is continuing its advocacy efforts on all fronts to let Congress know that prompt action is needed to help create jobs and move housing and the economy to higher ground. For example, NAHB President and CEO Jerry Howard this week emphasized these same points regarding the tax credit in interviews with CNN/Money, Congressional Quarterly and the L.A. Times.
NAHB Chief Economist David Crowe tied in the need for Congress to act on the home buyer tax credit in an appearance on Fox Business TV to discuss the government’s new-home sales report for August. He stressed the same message while discussing the new-home sales data with ABC Radio, CNN Radio and the Associated Press, and these points were also highlighted in a press release to the media. Also aiding our efforts, the Philadelphia Inquirer this week reported on a study by Campbell Surveys that says the home buyer tax credit has directly resulted in 357,000 home sales between Feb. 17 and Sept. 15. Using transaction information obtained from real estate agents, Campbell Surveys found first-time buyers accounted for 32 percent of home sales before passage of the American Recovery and Reinvestment Act on Feb. 17, and 42 percent to 43 percent in ensuing months. The article noted that the data “adds support to calls for extending the credit past its Nov. 30 deadline,” and quoted NAHB Director of Tax Issues Rob Dietz, who said: "We're looking for one more year, to Nov. 30, 2010, and extending the $8,000 credit to all primary-home buyers."