Cornyn Supports Proposal for New Tax Credit for Homebuyers

WASHINGTON—U.S. Sen. John Cornyn a member of the Senate Budget Committee today signed on as an original cosponsor of S. 2566 legislation introduced by Sen. Johnny Isakson R-Georgia that proposes a new tax credit for homebuyers.

The $15000 tax credit would be distributed over a period of three years for any individuals purchasing a home that is new foreclosed or under pending foreclosure. Through this tax credit Sen. Cornyn and the bill’s supporters hope to deliver an immediate boost to the housing market based on the success of a similar tax credit issued in the 1970s.

“As it stands America’s crippled housing market is beginning to cast its shadow on the rest of the economy and we must act now to stop this harmful trend” Sen. Cornyn said. “Taking a cue from recent history I’m confident this homebuyer tax credit would revive our struggling housing market much like a similar credit did for the sinking market in the 1970s.

“There is no better medicine for a struggling economy than giving taxpayers more of their hard-earned money back so they can spend and invest it as they know best. I hope my colleagues in the Senate will act swiftly and pass this legislation to provide a much-needed break to those families who by purchasing new homes are helping our housing market get back on its feet.”
Background:

S. 2566 will provide a direct tax credit for the purchase of a single-family home in the amount of $5000 a year for three years on homes purchased between March 1 2008 and February 28 2009. Buyers must occupy the homes as their principle residences to be eligible and purchases of homes from investors or by investors are ineligible. Homes eligible for the tax credit include:

• New homes where the building permit was issued and construction began on or before September 1 2007;
• Owner-occupied homes whose first mortgage loan is in default; and
• A single-family home that has been foreclosed on and is owned by the mortgagor or its agent.

Sen. Cornyn serves on the Armed Services Judiciary and Budget Committees. In addition he is Vice Chairman of the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee’s Immigration Border Security and Refugees subcommittee and the Armed Services Committee’s Airland subcommittee.