Rep. Rahall Works for First-time Homebuyer Tax Credit Act of 2009

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10/08/09 -- U.S. Rep. Nick Rahall (W.Va.) is working to pass the Home Buyer Tax Credit Act of 2009 (H.R. 1245) which aims to stimulate the economy by saving new homeowners money and helping increase home sales in local communities by providing tax credits to new homebuyers.

“Growing home buying grows the economy. This legislation is a no brainer. The fastest avenue out of this tough economy is homebuilding and home buying,” said Rahall. “Before the recession, building new homes accounted for 16% of our gross national product and with some 3000 components in a new home most sectors of our economy benefit every time a home is built and sold. Congress can't act fast enough on this one for me.”

This legislation would amend the Internal Revenue Code (IRC) to replace the current tax credit for first time homebuyers which will expire on November 30, 2009. The changes to the IRC would allow for a one-time credit for 10%- up to $15,000 - of the purchase price of a principal residence. The bill also contains a provision that will require homeowners to repay the tax credit they receive if the new homeowner fails to occupy the residence within 24 months after purchase or if the homeowner sells the residence within 24 months of purchase.

"The homebuyer tax credit legislation Congressman Rahall is working to enact can be one of the engines to pull our country out of this economic downturn. To say homebuilding is the foundation of the Nation is no exaggeration. The industry has been a reliable tool to offset every recession since World War II. We salute Congressman Rahall for his vision and work on the bill and hope the Congress will move forward with it in the near future," said Sandy Dunn, immediate past President of the National Association of Homebuilders and West Virginian.

“We want to encourage responsible home buying that strengthens the economy, while helping Americans avoid some of the home loan problems that led to so many of the foreclosures in recent years,” said Rahall.

Source: Rep. Nick Rahall