Published: 05-07-08
Legislation Aims to Help Homeowners Housing and Mortgage Markets
Washington DC – U.S. Congressman Pete Sessions (R-Dallas) today joined Congressman Lee Terry (R-NE) to introduce the Housing Opportunity for All Americans Act of 2008 legislation to provide a federal income tax housing credit to help stabilize our nation’s housing and mortgage markets.
“Our economy faces serious challenges as the number of unsold new homes and foreclosed resale homes climb to unprecedented numbers” Sessions stated. “This housing market instability and related economic downturn demand common-sense tax relief solutions proven to stabilize the marketplace and encourage economic growth.”
The Housing Opportunity for All Americans Act would provide homebuyers a one-time tax credit of 10 of the home’s purchase price up to $10000. Homes purchased within a year of the bill’s enactment would be eligible for the credit and the credit may be rolled over if the homebuyer hits his or her limit for tax credits for the year.
Furthermore this bill represents a concentrated effort to reduce local housing inventories and consequently excludes: mortgages that exceed the conforming loan limit and taxpayers who (1) are non-resident aliens (2) flip a home within the one year period or (3) sell a house to a relative simply for the credit.
“I fully support this responsible plan to provide market-based incentives as a solution for our nation’s housing market rather than a costly taxpayer-funded bailout that would increase government intervention in marketplace” said Sessions. “Tax relief is a proven means to encourage market correction providing qualified homebuyers with additional tools to invest.”
The bill is modeled after a similar tax credit from the mid-1970s (“Tax Reduction Act of 1975” Public Law 94-12) that was very successful in reinvigorating the housing market and boosting the economy by addressing the same problem in the housing market that we face today: a huge inventory of new homes and homes under construction.
“Through a market-based housing tax credit plan Republicans stand ready to help reduce new home inventory reduce foreclosures and stabilize the market value of homes thereby providing relief for taxpayers and a victory for the American economy” Sessions concluded.
Congressman Lee Terry (R-NE) introduced the bill today with the support of original cosponsors including Congressman Pete Sessions (TX-32) Congressman Eric Cantor (R-VA) Congressman Joe Wilson (R-SC) Congressman Vito Fossella (R-NY) and Congresswoman Shelley Moore Capito (R-WV).
