Congress has passed legislation that will extend and expand the $8,000 first-time homebuyer tax credit.
"We commend lawmakers for acting in a bipartisan manner
to extend the first-time home buyer tax credit beyond its November 30 deadline
and expand it to a wider group of home buyers," said NAHB Chairman Joe
Robson, a home builder from Tulsa, OK. "The tax credit has proven to be a
powerful economic incentive. Today's action by Congress will further stabilize
housing and the economy by creating new jobs, stimulating home sales, reducing
foreclosures, cutting excess inventories and stabilizing home prices."
In addition to the $8,000 credit for first-time homebuyers, the
new law has been expanded to include a $6,500 credit for owners of existing
homes who are purchasing a new principal residence.
The NAHB says it estimates the tax credits will create 211,000
jobs and generate 180,000 additional home sales in the coming year. It is also
expected to generate $9.6 billion in wage income and $6.9 billion in federal,
state and local taxes.
"The new NOL rules will throw a lifeline to struggling
businesses, allowing them to continue making payrolls, paying business loans and
otherwise keep their doors open until the economic recovery takes hold,"
Congress extends homebuyer tax credit
November 5, 2009