Mortgage Basics

Senators Push to Increase Home Purchase Tax Incentive to $15,000

margerybrown | 14 June, 2009 16:25

Senator Johnny Isakson-Georgia Republican, introduced a bill that would increase the tax credit to $15,000 and remove other restrictions on who can qualify.

The legislation Co-sponsored by Senator Christopher Dodd, would extend the homebuyer credit to multifamily properties used as the borrower’s primary residence. It would also remove income caps of $75,000 and $150,000 on individuals and couples seeking to claim the credit.

The bill would extend the tax credit, which now applies to homes purchased from Jan. 1 to Dec. 1, 2009, to one year after the new measure is signed into law, according to Watson. Isakson’s bill would make the credit available to all borrowers, not only borrowers who haven’t owned a home in the previous three years as is the case under current law. It would also let borrowers divide the credit over two years. The legislation wouldn’t be applied retroactively to purchases completed before the date of enactment, Watson said.

The bill is co-sponsored by Republican Senators Lamar Alexander of Tennessee, Saxby Chambliss of Georgia, David Vitter of Louisiana, James Risch of Idaho, Lisa Murkowski of Alaska, John Ensign of Nevada and Jim Bunning of Kentucky. Senator Joseph Lieberman, a Connecticut independent, has also signed on to the bill, according to the statement.