Housing And Real Estate Groups Press Home Buyer Tax Credit Extension

The Mortgage Bankers Association, National Association of Realtors and National Association of Home Builders sent a letter to Treasury Secretary Timothy Geithner, Housing and Urban Development Secretary Shaun Donovan, and National Economic Council Chairman Lawrence Summers, urging a one year extension of the $8,000 home buyer tax credit, as well as expansion of its applicability to all purchasers, not just first time buyers, an increase in the amount of the credit, and making the money available to cover closing costs.

Senate Banking Chairman Christopher Dodd and Georgia Senator Johnny Isakson are proposing legislation to extend the $8,000 credit for an additional seven months, removing the first time buyer limitation, and doubling the income threshold to $150,000 per person and $300,000 per family. Their proposal would cost an estimated $16.7 billion.

Republican Leadership Slams Job Creation Tax Credit

Without waiting for the Obama administration to even propose new legislation creating tax credits for businesses which hire new workers, House Minority Whip Eric Cantor yesterday said credit access was more important to business growth than tax credits for new hiring. "We need to do something to look at how small businesses can access credit, how can they regain their certainty to go ahead and invest capital," Cantor pronounced. "I think that many have demonstrated this type of tax provision is fraught with peril and potential for abuse - and frankly not able to deliver the real results that we want."

HUD Monetizes New Home Buyer Tax Credit

Housing and Urban Development Secretary Shaun Donovan announced last Friday at the spring board of directors meeting of the National Association of Homebuilders that HUD will permit first time home purchasers to apply the $8,000 tax credit enacted in the stimulus legislation either to their down payment or toward closing costs, rather than merely crediting $8,000 against their income taxes on the next return they file after buying the house or condo. NAHB estimates that this new policy will produce 160,000 new home sales during the time the tax credit is in effect.