$15,000 Tax Credit to Buyers?

Senator Johnny Isakson, who was a real estate broker in Georgia before he left for government, added a $15,000 tax credit amendment to the 800–900 billion dollar stimulus plan. The goal is to stimulate the housing market.

Here's how it would work, according to a press release from the Senator:

Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.
The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

**Remember that the bill has not passed so that all the parts of this tax credit are subject to change until the bill is signed into law.**

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