New Home Buyer 15% Tax Credit Proposed

The $8,000 tax credit for first time home buyers expires November 30, 2009.

A congressional proposal by Sen. Johnny Isakson, R-Ga., raises the credit amount to a maximum of $15,000 for any buyer of any home for a year. There are no income caps like in the current credit.

This will move the credits into the move-up buyer segment and could start a surge of buying. Interest rates, loads of inventory and this tax credit could get the housing crisis reversed. That is exactly what the economy needs. We do not need to bail out more banks and big corporations on wall street so they can pass out bonuses. We need to directly help the general public.

Lawrence Yun, chief economist at NAR, says extending or raising the tax credit would spur the housing recovery, which in turn would help bolster the economy.