Dear Mr. DeHanas,

 

Thank you for contacting me to express your support for extending the First-Time Homebuyer Tax Credit.  I certainly appreciate your taking the time to make me aware of your concerns about this important matter.

 

The Housing Assistance Tax Act of 2008, part of the Housing and Economic Recovery Act of 2008 (P.L. 110-289), created a refundable tax credit for first-time homebuyers purchasing a principal residence after April 8, 2008, and before July 1, 2009. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) modified the credit for taxpayers purchasing homes after December 31, 2008, and extended it to include purchases through November 30, 2009. 

 

First-time homebuyers generally include individuals who have not had a present interest in a principal residence within three years before buying the new property. The credit is based on 10% of the purchase price of the principal residence, but may not exceed $7,500 for residences purchased in 2008. Those purchased in 2009 may result in as much as an $8,000 credit. The credit may be reduced or eliminated for married taxpayers with income over $150,000 or other taxpayers with income over $75,000. To be eligible for the credit, taxpayers must purchase property after April 8, 2008, and before December 1, 2009. The property must be used as the taxpayer's principal residence.

 

There have been several proposals introduced in the 111th Congress that would expand the First-Time Homebuyer Tax Credit or extend the program beyond the November 30, 2009 deadline.   The most recent bill, H.R. 2905, was introduced by Representative Jerry Moran of Kansas.  H.R. 2905 would expand the credit to all individuals purchasing a principal residence and extend this credit through 2011.  H.R. 2905 has been referred to the Committee on Ways and Means.  While I am not a member of this committee, you may be certain that I will keep your views in mind should H.R. 2905 or additional relevant legislation come before the full House of Representatives.


 

Thank you again for sharing your thoughts with me.  To stay informed, please visit my website at www.hoyer.house.gov.  While there, you can sign up for the Hoyer Herald, access my voting record, and get information about important public issues.  If I can be of further assistance, please do not hesitate to contact me.  

 

With kindest regards, I am

 


Sincerely yours,

Steny H. Hoyer