The senator Johnny Isakson (R) from Georgia, a former real estate agent, introduced a bill to increase the first-time home buyers tax credit to $15,000 from the current $8,000 limit. The current law states that a first-time home buyers have until December of 2009 to take advantage of this incentive, so I’m not sure if he plans on extending the limit. Since the government works so slow, I imagine that if this were just to increase the limit, it would barely take effect until right before the expiration date.
“The first-time homebuyer tax credit has made a difference. First-time home buyers used it and the market stabilized, but we don’t have a recession in first-time home buyers. We have a recession in the move-up market,” Isakson said. “One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can.”
In addition, the legislation expands a few limits currently in place, such as allowing anyone who buys a primary residence to use the credit and removing the income limit for people making over $75k per year.
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