WVIT: Congressman Joe Courtney Announced New Legislation Extending First-time Homebuyer Tax Credit

During a press conference on April 21 in Vernon, Congressman Joe Courtney announced new legislation extending the first-time homebuyer tax credit included in the American Recovery and Reinvestment Act (ARRA), which Courtney supported, through 2010.

Representative Joe Courtney's legislation will also allow first-time homebuyers who claimed a $7,500 tax credit in 2008 to claim the same worry-free benefit that 2009 homebuyers now receive without paying it back, as the previous credit requires. A summary of the legislation is attached.

The first-time homebuyer tax credit is making a real difference in the housing market and spurring a market that until recently showed no signs of life, stated Courtney. The goal of my legislation is to help continue this positive momentum and get our economy back on track. The housing market, which I have often stated, is a real indicator of the health of our regions economy, and I will continue to do all that I can to bolster our economic future.

Congressman Courtney was joined by Rob Baham, a first-time homebuyer who recently purchased a new home at The Whitney Crossing in Vernon. Baham cites the ARRAs $8,000 tax credit as a critical part of his decision making process when he decided to make the home purchase.

The extension of the first-time buyer credit is essential to the recovery of the housing market. It motivates buyers to action, stated Nell Kleinhans, Owner, Coldwell Banker Right. We have already seen increased activity from this incentive in the last three to four weeks. Coupled with low prices and historically low interest rates, it is a great time to buy.

In 2008, Congress passed a substantial $7,500 tax credit in the Housing and Economic Recovery Act (HERA), but that law required first-time homebuyers to pay back the federal loan in 15 years. Congressman Courtneys legislative initiative repeals that payback provision and boosts the credit for 2008 homebuyers to $8,000.

The economy was in tough shape in 2008 and many first-time homebuyers took a risk to make a home purchase. They deserve the same tax advantage as first-time homebuyers in 2009, added Courtney.