Isakson Continues Push to Boost Economy By Expanding Homebuyer Tax Credit

Voices Disappointment in Senate’s Rejection of Amendment

Aug 07, 2009

WASHINGTON – U.S. Senator Johnny Isakson, R-Ga., today criticized the Senate’s rejection of his amendment to stimulate the economy through housing demand and boost the economy by expanding the first-time homebuyer tax credit to a $15,000 tax credit for any buyer of any home.

Isakson’s amendment, which he sought to attach to the “cash for clunkers” bill, was defeated by a vote of 47 to 50. Isakson then voted against final passage of the “cash for clunkers” bill.

“I’m disappointed in this vote on the homebuyer tax credit, because every American is suffering in this economy. Every American deserves for Congress to look for positive incentives to bring the housing market back, restore their equity, improve their values and return us back to a vibrant economy,” Isakson said. “Positive incentives cause positive results. The problem we have, though, is it was not the automobile market that disappeared first in America. It was the collapse of housing market.”

Specifically, Isakson’s amendment would expand the current first-time homebuyer tax credit from $8,000 to $15,000 and to include any homebuyer. The current $8,000 tax credit is only for first-time homebuyers and includes income caps of $75,000 for an individual and $150,000 for a couple. Isakson’s legislation would increase the amount to $15,000, would remove the income caps and would make the tax credit available to all homebuyers. The legislation would extend the tax credit for one year from date of enactment and would allow homebuyers to claim the credit on their 2009 tax return for purchases made in 2010. Finally, the amendment would have required the expansion of the tax credit ultimately to be paid for by already appropriated stimulus funds. Isakson’s amendment was endorsed by the National Association of Home Builders and the National Association of Realtors.

Isakson has more than three decades of experience in the real estate business, and he has pushed a similar homebuyer tax credit since January 2008 because he knows it will work. During the 1970’s, America faced a similar housing crisis, leaving a three-year supply of vacant homes. Congress at that time passed a $2,000 tax credit for anyone purchasing a new home for their principle residence. The results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.