Now here’s some news we can really get excited about!  Did you know every time a home is sold it generates an average of $63,000 of cash flow into the economy within the first year. It includes money spent on home décor, landscaping and lawn care, mortgage, title and real estate companies. So, why don’t we do for the real estate industry what has recently been proven successful to the auto industry.

There is a new $900 billion stimulus plan working in Congress.  One amendment, which is now a part of the proposed stimulus plan, includes a $15,000 tax credit for purchasing a home.  Georgia Senator, Johnny Isakson, is the main sponsor of this bill.

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 legislations 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.

Another provision in this bill addresses the current tax credit now in place for first time home purchasers. The bill will forgive repayment of the current tax credit.

Although nothing has been passed officially into law yet, here are a few of the key items of interest related to real estate in the stimulus bill:

  • The $15,000 tax credit can be taken over one year or spread over two years.
  • The $15,000 tax credit doesn’t have to be repaid.
  • The $15,000 tax credit will apply for anyone who buys a home - not just first time home buyers.
  • The $15,000 tax credit is a credit - not a deduction: meaning you will get the full $15,000.
  • The $15,000 tax credit is the lesser of $15,000 or 10% of the purchase price of the home.
  • The $15,000 tax credit will be allowed for homes that are bought within one year of if and when the bill is passed.

I am highly encouraging everyone I know to pick up the phone and call their Senator or Congressman.  It is very easy to get contact information. Go to and enter your home’s zip code.  Then CALL your Senators and Congressmen and tell then you want them to support the proposed $15,000 tax credit for all home purchasers.