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Sen. Brown proposes bill to extend a tax credit |
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Thursday, 15 October 2009 |
By WILLIAM LANEY
Managing Editor
In an effort to help first-time home buyers, a U.S. Congressman from Ohio plans to propose legislation to extend a tax credit through May 31.
U.S. Sen. Sherrod Brown, D-Ohio, announced Wednesday his sponsoring of Senate Bill 1678 during a teleconference with state-wide media. The bill extends a refundable tax credit, which can be as much as 10 percent of the purchase price of the home not exceeding $8,000, from Dec. 1 to May 31.
“Part of the middle class dream in our country has been to own a home, to be part of a thriving neighborhood and to support schools and the communities in which live and which we work, those parts of the economy that has hurt Ohio families over the past year the housing crash has been particularly painful,” Brown said. “I am working with President Obama and Congress to help Ohio families to purchase new homes and revive the housing market.
“We know that what leads us typically out of a recession is autos and housing so it is imperative that we move on this,” he said.
The tax credit, which was created in 2008 through the passage of the Housing and Economic Recovery Act of 2008 and extended through the American Recovery and Reinvestment Act of 2009, helped more than 48,000 Ohio families purchase their first residence. According to the IRS, as of Aug. 22, 48,771 Ohio households receiving tax credits valued collectively at $325,696,178.
Nationally more than 1.4 million people have utilized the tax credit.
People who have never owned a house or have not owned a house in the past three years are eligible. The income requirement is for a single filer with an income of $75,000 or less or a couple making $150,000 or less.
Georgia Republican Sen. Johnny Isakson and Connecticut Democrat Sen. Chris Dodd have proposed raising the limits to $150,000 for a single filer and $300,000 for couples.
Extending the program under Brown’s proposed legislation would cost approximately $6 billion, while the Isakson-Dodd proposal, which would extend the program through June 30, is estimated to cost $16.7 billion.
Brown said Ohioans grasp the benefits of people owning their own home.
“Ohioans recognize the economic benefit of buying a home and receiving a tax credit because it helps pump money into our state’s economy,” Brown said. “Home buying, home purchases, home building, home renovations creates jobs, helps stabilize home prices, shores up property tax bases for our communities.
“The tax credit is critical to getting the economy back on track,” he said. “It will help tens of thousands more Ohio middle class families if it is extended. I look forward to working with my Senate colleagues — this is all about economic recovery, this is all about strengthening the middle class, this is all about giving hope to the future.”
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Last Updated ( Friday, 16 October 2009 )
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