Rep. Dahlkemper Supports First-Time Homebuyer Tax Credit Extension

03 November 2009 -- Washington -- Today, Congresswoman Kathy Dahlkemper (PA-3) today voiced her support of an extension of the first-time homebuyer tax credit. The $8,000 tax credit, which was made available as part of The American Recovery and Reinvestment Act, is set to expire on November 30.

“The $8,000 tax credit provides a strong incentive for people who are considering purchasing their first home,” Dahlkemper said. “As we continue to work toward economic recovery, providing these types of incentives will not only stimulate the housing market, but also allow first-time home buyers to live the American dream of owning a home. I hope to see this tax credit extended so we can continue to give a boost to the housing market.”

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The American Recovery and Reinvestment Act increased the maximum tax credit from $7,500 to $8,000 and removed the repayment requirement for first-time home buyers who purchase a house between January 1, 2009 and November 30, 2009. (The credit in effect in 2008 required that the tax credit be repaid over a 15-year period, effectively turning it into an interest-free loan.) The National Association of Realtors has said that 1.4 million first-time home buyers have taken advantage of the tax credit so far this year and about 350,000 of them have specifically cited the tax credit as the reason they decided to purchase their new home.

Both chambers of Congress are considering legislation to extend the first-time homebuyer tax credit, potentially through June 2010. Dahlkemper is urging her colleagues both in the House and the Senate to quickly adopt an extension of the tax credit to continue to stimulate growth in the real estate market.

“This tax credit has created more than 130 home sales in the Erie area. It has been an enormous boost to our local market, benefiting homebuyers and realtors alike. I’m pleased to see that Congresswoman Dahlkemper supports an extension of this tax credit and hope that the rest of Congress follows suit,” said Charles Foht, president of the Greater Erie Board of Realtors.

In order to receive the first-time homebuyer tax credit, the house must be closed on by November 30. Real-estate professionals recommend that buyers be in contract for a house 30 days to 45 days before the deadline if they hope to close by the deadline.

Source: Congresswoman Kathy Dahlkemper