A proposed tax credit for home purchases is raising the hopes of the real-estate industry, which believes the credit could be just the stimulus needed to stabilize the housing market and get hesitant buyers to take the plunge.
A provision included in the Senate version of the stimulus bill would provide a tax credit for 10% of the purchase price of a home, up to a maximum $15,000. The provision faces an uncertain future even if the stimulus passes in a Senate vote set for Tuesday.
The measure would have to win backing from the House, which last week voted to repeal a provision that requires an existing $7,500 tax credit to be repaid over 15 years. That credit, which has income limits, applies only to first-time home buyers, who last year accounted for about 40% of all buyers, according to the National Association of Realtors.
Wall Street Journal