Senators Johnny Isakson (R-Ga.) and Christopher Dodd (D-Conn.) plan to offer an amendment to extend and expand the $8,000 first-time home buyer tax credit to a House-passed bill that would extend unemployment insurance benefits. Though it is unclear if the Senate will act on this proposal, NAHB will be urging senators to approve the amendment if it comes up for a vote.
The Isakson-Dodd proposal would extend the credit to June 30, 2010 and expand it to a wider circle of principal home buyers. It would also double the current income eligibility limit to $150,000 for single taxpayers and $300,000 for married taxpayers filing a joint return.
Reporting on the Isakson-Dodd proposal, the AP cited NAHB statistics that extending the tax credit for one year and expanding it to all buyers of a principal residence would spur 383,000 additional home sales, create more than 347,000 jobs, generate $16.1 billion in wages and salaries and $12.1 billion in business income.