Isakson’s Homebuyer Tax Credit Approved Unanimously by Senate

Congress Passed Similar Tax Credit in ’75 That Helped Housing Market, Economy Recover

Feb 04, 2009

WASHINGTON – Declaring that we must fix housing first in order to turn the U.S. economy around, U.S. Senator Johnny Isakson, R-Ga., won unanimous Senate approval today to add to the economic stimulus bill his proposal to offer a $15,000 tax credit to individuals who purchase a home in the next year.

“It is time to fix America’s problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment.”

If Isakson’s amendment remains in the final legislation it would allow a homebuyer who uses their home as his principal residence to claim a direct tax credit of $15,000 or 10 percent of the purchase price, whichever is less on his 2008 income tax return. Purchases would have to be made within one yea of the legislation’s enactment and the amendment would sunset the current $7,500 housing tax credit on the date of enactment.

In 1975, Congress passed a $2,000 homebuyer tax credit in 1975 when America faced a similarly bad housing market. The tax credit spurred home sales dramatically and turned the housing market around. Isakson believes a homebuyer tax credit would have the same positive impact this year.

Isakson has over 30 years of experience in the real estate business and served as president of Northside Realty in Atlanta for 20 years as it grew into the largest independent residential real estate brokerage company in the Southeast and one of the largest in the nation.