Senator Gregg Backs Legislation to Provide Tax Credit to Homebuyers

For Immediate Release                                                                     January 30, 2008

Senator Gregg Backs Legislation to Provide Tax Credit to Homebuyers
                                                                                              

Senator Judd Gregg, ranking member of the Senate Budget Committee, today announced that he is co-sponsoring legislation to provide a $15,000 tax credit for anyone purchasing a new home, a foreclosed home or a home where foreclosure is pending.  The legislation (S. 2566) will provide much-needed economic relief to millions of Americans hurt by the downturn in the housing market.

“The rates of foreclosure and unsold homes have reached record highs. This tax credit will provide Americans with better prospects of owning a home and spur consumer confidence in the housing market,” said Senator Gregg. “Although there is still work to be done, this is a strong step towards reducing the number of foreclosures and relieving Americans of the economic challenges brought on by the waning housing market.”

The legislation would provide a tax credit in the amount of $15,000 over three years for single-family homes purchased between March 1, 2008 and February 28, 2009. Single-family homes that have been foreclosed, owner-occupied homes whose mortgages are in default, and new homes built before September 1, 2007 are also eligible for the tax credit. Similar legislation was passed in the mid-1970’s that helped home values stabilize and reduce housing inventory.

The bill is authored by Sen. Johnny Isakson (R-GA) and co-sponsored by Sen. Gregg, Sen. Wayne Allard (R-CO), Sen. Saxby Chambliss (R-GA) and Sen. Larry Craig (R-ID).