Yes the 2009 First Time Home Buyers Tax Credit expires on Dec 1, 2009 a few months from now however; Are things in the works that will not only extent the tax credit for Huntsville First Time Home Buyers but also open up the possibility of home buyer tax credits for all home buyers, not just first time buyers, through 2010?
While the answers to these questions may not yet be an affirmative YES, the idea and possibility of just such action by our Congressional Leaders is not at all far fetched, in fact it may very well happen and here is why:
The Home Ownership Moves the Economy (Home) Act of 2009 dubbed HR 2801. This act is a current bill within the House of Representatives and at present is within the powerful House Ways and Means Committee.
This committee is made up of 41 members: 25 Democrats, 7 Republicans from ‘declining housing market’ states like CA, NV, and MI, and 11 Republicans from other states. The bill may very well be a pre-primed move intended to be ready to execute if the economy does not improve along its current path and those facing re-election deem they must do something more in regards to economic stimulus.
The recent successful ‘Cash for Clunkers‘ legislation also may be pointed to as exemplary, since this type of direct consumer spending stimulus appears to be very successful in reaping immediate short term rewards, and besides there is nothing more short sided than a politician’s desire to be re-elected.
The original first time home buyer tax credit of 2008 was basically a fifteen year, interest free loan. Then in 2009 this was replaced by the current $8,000 credit with no payback rider that is set to to expire at the end of November.
HR 2801 however is a real doozy because the current income limitations would be removed (yep no phase out and no income restrictions), moreover it will cover not just First Time Home Buyers but ANY Home Buyer and get this; in its current state all home buyers could claim a $7,500/a year tax credit for two years, not one.
There is little doubt in my mind that this bill in its current state, if passed into law, could likely generate another housing bubble …think about it, with $15 grand coming your way over a 2 year period, Who could afford to rent? …It certainly reminds me of the Dire Straits song lyrics: ‘Get your Money For Nothing and your Chicks for Free’ …hard to beat that deal, wouldn’t say?
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It will be interesting to see what legislation will do…