WASHINGTON, DC – October 15, 2009 – (RealEstateRama) — A local Congressman is supporting efforts in Congress to extend a popular tax break for new homeowners. Rep. Brad Ellsworth says the First-Time Homebuyers Tax Credit has been wildly successful and should be extended for another year. Congress approved the 8,000 tax credit as part of the Economic Recovery Plan in February, but the program is set to expire on November 30, 2009.
Ellsworth co-sponsored legislation, H.R. 3640, to provide an extension and allow more homebuyers to participate. Specifically, the bill would extend the deadline to December 1, 2010 and open up the credit to all homebuyers purchasing their principal residence. Ellsworth said extending the tax credit will benefit more than just homebuyers:
“This is not only good for homebuyers, it’s good for our communities. By boosting home sales in areas that have experienced significant numbers of foreclosures, this credit has begun to stabilize home values for neighborhoods across the country,” said Ellsworth. “In addition, new home sales have promoted home construction and realtor jobs in our community; putting our neighbors back to work.”
Nearly 5,900 Hoosiers have taken advantage of the program so far. To qualify, most new homebuyers must complete the purchase of the home on or before November 30, 2009. Last week, Congress voted to extend the deadline by one year for service members, intelligence personnel and Foreign Service officers deployed overseas.
“It’s just common sense; we should not penalize these men and women for their service to our country,” said Ellsworth. “The extension will ensure they can take advantage of this opportunity when they return.”