U.S. Senator Lamar Alexander, R-Tenn., today joined Senator Johnny Isakson, R-Ga., in offering legislation to provide a tax credit for anyone purchasing a newly constructed home, a foreclosed home or a home where foreclosure is pending.
“Providing Americans with this $15,000 tax credit over three years would provide a much-needed boost to the housing market and the economy,” Alexander said. “This incentive will restore confidence in the housing market while preventing a housing disaster by reducing the number of unsold and foreclosed homes on the market that threaten to lessen home values and reduce homeowner equity.”
The legislation, S. 2566, provides a direct tax credit for the purchase of a single-family home in the amount of $5,000 a year for three years on homes purchased between March 1, 2008, and February 28, 2009. Buyers must occupy the homes as their primary residences to be eligible, and purchases of homes from investors or by investors are ineligible. Homes eligible for the tax credit include:
New homes where the building permit was issued and construction began on or before September 1, 2007;
Owner-occupied homes whose first mortgage loan is in default; and
A single-family home that has been foreclosed on and is owned by the mortgagor or its agent.
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