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Will homebuyer tax program continue?

Steve Henn Oct 13, 2009
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Will homebuyer tax program continue?

Steve Henn Oct 13, 2009
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TEXT OF STORY

Steve Chiotakis: In all the bailouts, giveaways and subsidies during the past year — only a few were aimed directly at us, at the consumer. One of the most popular with the housing industry has been the first-time homebuyer’s tax credit. It’s set to expire in a couple of months. Marketplace’s Steve Henn looks at whether the program will continue.


Steve Henn: The tax credit will probably help close the deal on 400,000 additional home sales by the end of November when it’s set to expire. Extending this program — and possibly expanding it — is a top priority of homebuilders, realtors and mortgage bankers who are preparing a lobbying blitz.

ROBERT WARD: Removing it would I think not be a good thing for the overall housing market.

Robert Ward is at the Economist Magazine’s intelligence unit.

Ward: Clearly given the weaknesses in the U.S. housing market any support is welcome.

In its current form, the new homebuyer’s tax credit offers first-time homebuyers up to $8,000 to offset the purchase of a house.

Already there are various bills in Congress that would enlarge it to much as $15,000, extend the program for a year, even expand it to include all buyers.

In Washington, I’m Steve Henn for Marketplace.

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