News Details (Posted: June 25, 2009):

Full Description:

Could $8K Incentive Jump to $15K?

In an effort to jump-start the ailing housing market, Sen. Johnny Isakson, a Republican from Georgia, has introduced legislation that would beef up the tax credit for first-time buyers. Under the terms of his bill, which was introduced last week, the size of the credit would expand to a maximum of $15,000 from the previous cap of $8,000, and it could be taken by anyone who buys a primary residence instead of only by first-time homebuyers. The bill would also remove the income limits that had prevented individuals making more than $75,000 a year from claiming the credit, which would be available for a year after the date of the bill's enactment. Will Congress approve this legislation? It's possible. If mortgage rates - which have gone up sharply in recent weeks - continue rising, Congress could come to see the expanded tax credit as a viable option to offset escalating housing costs. Daniel Davis, executive director of the Northeast Florida Builders Association, said, "Anything we can do to spur our economy and start hammers swinging is needed. I think these proposals are a huge step in the right direction and look forward to this legislation passing."