Athens GA Properties, Athens Georgia Homes, and Athens Real Estate

“Senate Unanimously Approves Isakson Amendment to Stimulate Housing Market”

“Homebuyer Tax Credit Revived Market in 1975 and Would Work Today”

So say the Headlines to Senator Isakson’s Press Release marking his triumph on the floor of the United States Senate.  

How could this amendment benefit you the would-be homebuyer?

Isakson’s amendment to the soon to be approved economic stimulus bill would;

*provide a direct tax credit to any homebuyer who purchases any home. “The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less.” according to the press release from Senator Isakson’s office.

*purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

*The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

According to his website, “Isakson has pushed hard for a non-repayable tax credit for homebuyers because he knows that it will work. In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction.  Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.”