The Homebuyer Tax Credit received an extension a couple of months ago, now we are wondering about the revival of this tax credit. Currently, there's no formal discussions of extending the homebuyer tax credit further. This situation comes after the statements Housing Secretary Shaun Donovan made on August 29, 2010, when he stated that housing sales figures were worse than expected. When extending the tax credit for a third time last fall, lawmakers stated that it would be the last one. However, when Mr. Donovan was asked about considering reviving the homebuyer tax credit in an attempt to improve the recent bad real estate news, Donovan said, "I think it's too early to say after one month of numbers whether the tax credit will be revived or not. All I can tell you is that we are watching very carefully." This remarks suggested that the revival of the tax credit might come back into play.
Lobbying again for the revival of the tax credit are 1)National Association of Realtors and 2) National Association of Home Builders. These industry groups who lobbied hard for its extension last fall, want to see it come back now that it's expired, the San Francisco Chronicle reported.
The biggest opposition on the three different versions of which were in place between April 9, 2008, and June 30, 2010 is worth an estimated $22 billion loss in revenue through 2019. To add to the opposition, eventhough more than 2.25 million homebuyers had claimed the credit in its various forms as of July 3, some critics say many of them would have bought a home anyway, and that the tax credit spurred only a fraction of those transactions.
Stay tuned!
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