Is the $15K tax credit for home buyers that is in the Senate’s version of the Stimulus Bill in jeopardy?
Reader and new home buyer Tyler (who has been providing fantastic commentary in our $15K tax credit posts) dug up this nugget from CNN:
A Democratic source also said a plan to offer tax credits to homebuyers that is in the Senate bill will be scaled back to make room for House priorities and a Senate proposal to offer tax incentives to buyers of American-built cars will be nixed. (source)
In an effort to find another corroborating source, I looked through a dozen or so other articles (of the 251,513 stimulus bill related news articles currently indexed on Google”¦) and haven’t found any.
Yet. Update, see below for more sources.
In my opinion, lowering the home buyer tax credit limit from $15,000, if that is even what “scaled back” means, isn’t a show stopper. The way the bill is currently written, that $15K credit can be evenly distributed across two years. In order to pay $7,500 annually in taxes and be able to utilize all of the $15K credit in two years, you’d have to make over $75,000 a year. There is already much whining across the Internet that this $15K tax credit benefits “the rich”. Lowering the limit would diffuse some of these concerns and still provide a “get off the fence” motivator for some potential home buyers.
In related news, the Talking Heads of mainstream media are reporting that a compromise between the House and Senate versions of the stimulus package may be reached today.
UPDATES: Kansas City.com reports the $15K credit will be scaled back.
The Washington Post is also reporting a “scale back”.
Listening to Fox News live (at 12:09pm MST) and they are reporting the home buyer’s tax credit may be eliminated completely.
Just in from the AP: “Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said.”