Senator Proposes $15,000 Tax Credit, Expands Eligibility

A Republican Senator proposes an increased tax credit and expands home buyer eligibility.

Senator John Isakson (R-GA) introduced S. 1230 The Home Buyer Tax Credit Act of 2009, which would increase the $8,000 tax credit for eligible home buyers to $15,000 and release the first-time buyer restrictions stipulated in the current legislation. The bill, introduced in mid-June, is co-sponsored by 15 Senators and was referred to the Committee on Finance.

Significant movement on the bill is unlikely to occur before the current legislation expires on December 1, 2009, likely in an attempt to discourage current home buyers from hedging their purchase decisions. However, the new credit would expand the benefit to individuals and couples who currently own homes, potentially boosting new and luxury home sales by drawing more move-up buyers into the market.

The bill's key stipulations include:

  • Individuals/Couples must occupy the home as a principal residence for at least 24 months.
  • The tax credit can be equally divided and used over two years.
  • The credit can be divided between unmarried individuals who are jointly purchasing a home in an amount not to exceed $15,000.
  • Married individuals filing separately can claim $7,500 per person.

For more information on this legislation, please visit http://www.govtrack.us/congress/bill.xpd?bill=s111-1230 .

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