WASHINGTON, D.C. – October 31, 2009 – (RealEstateRama) — U.S. Representative Bart Gordon is supporting efforts in Congress to extend a popular tax credit that has benefited thousands of new homeowners in Tennessee. Gordon has strongly urged action on legislation that would extend the First-Time Homebuyers Tax Credit, which is set to expire at the end of November.“This tax credit has been widely successful in Tennessee, where more than 35,000 people have taken advantage of it,” said Gordon. “By increasing housing demand, it has been effective in helping the housing market and our economy get back on track.”
Congress approved the $8,000 tax credit as part of the Stimulus bill in February, but the program is set to expire on November 30, 2009. A recent report by the Government Accountability Office found that Tennessee ranks fifth in the country in the use of the First-Time Homebuyers Tax Credit, with Tennesseans claiming a total of $256.2 million.
In a letter to House Speaker Nancy Pelosi, Gordon joined his colleagues in writing, “Nothing is restoring confidence in the market like the First-Time Homebuyers Tax Credit. Yet, with an average closing time of three months, many potential homebuyers are nearly out of time to use the credit – and an extension is needed for the credit to maximize its impact for both homebuyers and our housing market.”
Gordon is the cosponsor of bipartisan legislation, the Homebuyer Tax Credit Act (H.R. 1245), which would extend the deadline by one year and increase the tax credit to $15,000. H.R. 1245 has been endorsed by the National Association of Realtors, the Mortgage Bankers Association, Business Roundtable, and the American Land Title Association.
“Extending this tax credit will build upon the tax relief that Tennesseans are getting right now through the Making Work Pay Tax Credit, which was also included in the Stimulus,” added Gordon. “Since April 1, nearly every Tennessean has been receiving extra money in their monthly take-home paycheck. I will continue to support efforts aimed at reducing the tax burden Americans face and helping our economy recover.”
