$15,000 Home Buyer Tax Credit

As a real estate professional, you're sure to start getting questions about the $15,000 Home Buyer Tax Credit proposal embedded within the Senate version of the $800 billion stimulus package. It's a relatively straight-forward proposal, and it's based on proven practices which have historically worked to stimulate housing activity, although never on quite this scale.

The way it's looking at this time is that a key component of the Senate's version of the stimulus package will make it into law. The proposed $15,000 home buyer tax credit would provide a credit of this amount, or 10% of the purchase price of the house, whichever is less, to anyone purchasing a primary residence within one year of the enactment of the stimulus bill. There are no income limits. The incentive is designed to stimulate activity in the housing market, for either existing or new homes. When used in conjunction with other economic motivations available in various states and cities around the country, such as first time home buyer interest-rate and down-payment assistance programs, this measure could start a pretty strong economic engine.

You can read about 6 Things to Know about the $15,000 Home Buying Tax Credit in this article by Luke Mullins in today's edition of U. S. News and World Report, and more about the proposal here.

Combine this particular credit with generous federal and state tax credits widely available for the installation of alternative energy systems and energy efficiency and conservation measures, and you build a tremendous economic motivation for energy-conscious home buyers to make significant investments today. This is the primary goal of policy makers attempting to stimulate our economy through a combination of investments and job creation in green energy and encouragement of increased activity in the housing market. You can learn lots more about energy tax credits, and pursue your exploration of this important and rewarding subject, in this summary of the Emergency Economic Stabilization Act of 2008. For important updates, news, links, and other reading material about green energy, check out www.greenenergyebooks.com.