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New Legislation: $15,000 Tax Credit For Home Buyers

|Includes: BZH, DHI, Hovnanian Enterprises, Inc. (HOV), TOL

June 10, 2009

Senator Johnny Isakson's new $15,000 tax credit for homebuyers bill is gaining momentum among a bipartisan group of senators. Senators Lamar Alexander, R-Tenn., Jim Bunning, R-Ky., Saxby Chambliss, R-Ga., Chris Dodd, D-Conn., John Ensign, R-Nev., Joe Lieberman, ID-Conn., Lisa Murkowski, R-Alaska, James Risch, R-Idaho, and David Vitter, R-La. are co-sponsoring the bill.
The bill seeks 5 principal enhancements for homebuyers:
1. Increase the maximum amount of the tax credit from $8,000 to $15,000.
2. Benefits all buyers of any home, not just first-time buyers.
3. Eliminates the income caps of $75,000 for an individual and $150,000 for a couple
4. Extends the tax credit for one year from date of enactment.
5. Allows homebuyers to claim the credit on their 2009 tax return for purchases made in 2010.

With Dodd and Liberman among the co-sponsors, and a growing bipartisan coalition, this bill could be fast-tracked into law within weeks. 
The homebuilding sector could rally hard when Obama mentions support for this legislation.