Homebuyer Tax Credit Act of 2009

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3590) to amend the Internal Revenue Code of 1986 to modify the first-time homebuyers credit in the case of members of the Armed Forces and certain other Federal employees, and for other purposes.

Mr. Speaker, I ask that all Members have 5 legislative days to revise and extend their remarks and insert extraneous material in the record.

In addition, I, along with Ways and Means Ranking

Member Camp, have asked the nonpartisan Joint Committee on Taxation to make available to the public a technical explanation of the bill. The technical explanation expresses the committee's understanding and legislative intent behind this important legislation. It is available on the Joint Committee Web site at www.jct.gov, and is listed under the document number JCX-3909.

Mr. Speaker, I yield myself such time as I may consume. H.R. 3590, the Service Members Home Ownership Tax Act, is about basic fairness for those who serve our country. In June of this year, a constituent contacted me regarding an issue of great concern to his family because they had purchased a home in my district, with the first-time homeowner tax credit. Yet, because of a temporary USAID Foreign Service assignment overseas, they must repay the credit.

This constituent eloquently expressed his frustration and asked my office to help him and the thousands of Foreign Service families like him. The next month I introduced the Call to Service Homebuyer tax credit to protect families in the Foreign Service, intelligence community and military who serve our country away from home. I would note that my friend and colleague, Congressman Kind from Wisconsin, has been working on similar legislation focused on the military, and I deeply appreciate his partnership and coordination in working together to move this expeditiously, and of course that of the Ways and Means leadership, Chairman Rangel, Ranking Member Camp and the Ways and Means staff.

Currently, the credit provides up to $8,000 towards the purchase of a home through November 30 of this year, provided that the home is the primary residence for 36 months afterward. The program has been so successful that the National Association of Realtors estimates that almost 2 million families will file for the credit, and that approximately 350,000 wouldn't have been able to purchase a home without it. But for all its popularity, the credit is inaccessible to many Americans, who, like my constituents and Congressman Kind's, are serving in the military, Foreign Service or intelligence sector. These occupations obviously often require time served abroad, rendering a 36- month commitment to a domestic residence difficult and, in some cases, impossible.

Even now there are hundreds of thousands of men and women who are overseas serving our country on bases and embassies and other posts away from family, friends and community, often in very hazardous circumstances. Those serving our government should not have to choose between their job and their home. This bill protects those called to service, now or in the future, by waiving the recapture time for duty away from home. It also gives a second chance for those who served away from home in 2009 by extending the credit for 1 year. I strongly urge my colleagues to support the legislation.

I reserve the balance of my time.

Mr. Speaker, it is my pleasure to recognize the gentleman from Tennessee (Mr. Tanner), the distinguished Chair of the Social Security Subcommittee of Ways and Means, for 2 minutes.

Mr. Speaker, it is my pleasure to recognize the gentleman from Wisconsin (Mr. Kind), a tireless champion of veterans with whom I've been pleased to work with on this legislation, for 3 minutes.

It is my privilege to yield 2 minutes to a tireless member of the Ways and Means Committee, the gentleman from New Jersey (Mr. Pascrell).

It is my pleasure to recognize for 2 minutes a gentleman who often shares his insights about military families, the gentleman from North Carolina (Mr. Etheridge).

Mr. Speaker, I'm pleased to recognize for 2 minutes a gentleman who's been long active on this issue, the gentleman from Wisconsin (Mr. Kagen).

At this time I'm pleased to yield 2 minutes to a tireless champion of Las Vegas, the gentlewoman from Nevada (Ms. Berkley).

I would express my appreciation to Mr. Camp and his team for helping move this legislation through in a bipartisan and expeditious fashion.

I would conclude, Mr. Speaker, by saying you have heard today strong testimony from people on both sides of the aisle why this legislation is important. Over the course of the last 6 months I've had an opportunity to make it personal in terms of Oregonians: people in the Peace Corps, in the Foreign Service in Swaziland, in China, in Mozambique, who are posted overseas but for whom their roots are still here. We want to make sure that it makes a difference for them.

Likewise, in Oregon we have significant deployment of our 41st Brigade of the Oregon National Guard who will be serving in Iraq and scheduled to not return until the spring of 2010. It's personal for all of these people.

It's a pleasure to see the rapid response to respond to the needs of these Americans serving abroad.

I note that this legislation is endorsed by The American Legion, the Military Officers Association of America, the National Association of Home Builders, the National Association of Realtors, the National Military Family Association and Veterans of Foreign Wars of the United States.

I strongly urge my colleagues to add their support to this bill and give the men and women who serve our country the same opportunity as other Americans to own a home.

I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I rise in strong support of H.R. 3590, and thank my colleague and friend from Oregon, Mr. Blumenauer, not only for yielding me the time but for the work that he has put into this important piece of legislation. I also want to thank Chairman Rangel and Ranking Member Camp and the other members of the Ways and Means Committee, and the bipartisan support that this legislation has in Congress today. It is the right thing to do for our men and women in uniform.

As my colleague from Tennessee also indicated, Mr. Tanner, it is completely paid for. So it will not add a nickel to our national deficit. And it incorporates a number of very important proposals, including legislation that I had introduced earlier this year with a number of my colleagues to ensure that the men and women who are serving our country abroad are eligible for all the benefits and the opportunities that would be available to them as if they were stationed here in the United States instead of being deployed abroad in a conflict situation where they can't take advantage of these programs because of their deployment.

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This sort of equity is the bare minimum that we should extend to these patriotic servicemembers, many of whom are serving us very bravely in very dangerous missions.

Earlier this year, Congress took an important step to rejuvenating the housing market and helping middle class families buy their first home by modifying and extending the First-Time Homebuyer Credit. This important provision provides first-time homebuyers with an $8,000 tax credit for homes purchased before November 31, 2009. Unfortunately, again, with our servicemembers serving overseas, they haven't been able to take advantage of that credit.

Earlier this year, I was joined by my colleague and friend from Wisconsin (Mr. Kagen) along with Representatives Sam Johnson and Charles Boustany, to introduce H.R. 2562, the Service Members Home Ownership Act. All that did was extend the opportunity for our servicemen and -women who are serving us abroad by 1 year the opportunity to take advantage of the first-time homebuyer $8,000 tax credit.

And with the work that Mr. Blumenauer did and his focus on extending that to Foreign Servicemembers deployed overseas and members of our intelligence community, these provisions are reflected in this legislation today.

I do want to thank Chairman Rangel and others on the committee for understanding the basic equity that's enshrined in this legislation and also for clarifying the tax treatment of the Homeowner's Assistance Program, a program that is administered by the Department of Defense that was expanded in the American Recovery Act that makes it easier for certain members of the military to sell their homes as a result of their service to their country. The passage of this bill today will make sure that this assistance is not taxed as income.

I think these are very simple steps, steps that are necessary and fair to our servicemen and -women, including the largest call-up of National Guard members since World War II in the State of Wisconsin, who are serving us so very well overseas right now under trying and difficult circumstances. But the men and women who put their lives on the line for us every day deserve this kind of treatment from their government.

So I support the legislation, and I strongly encourage the rest of my colleagues to do so.

Mr. Speaker, I'm going to do something novel tonight. I am going to reach out to my Democrat colleagues. And I'm glad to see some of them, like Don, over there tonight to listen to my exhortations.

Mr. Speaker, the $8,000 tax credit for first-time homebuyers was one of the reasons why home sales went up by about 5.1 percent last month. That was an indication that we are probably moving in the right direction as far as stimulating some economic growth in the housing industry. But the housing industry is in a depression right now. And we need more than just the $8,000 tax credit for first-time homebuyers.

Now, back in 1975, Congress passed the Tax Reduction Act of 1975, which included a tax credit not just for first-time homebuyers, but for all homebuyers, up to $2,000 in a tax credit. As a result, they increased within the next year by 400,000 the number of houses that were sold, and in 2 years they were back up to the 2 million house level.

So we need to stimulate economic growth in the housing industry across the board, not just for first-time homebuyers. Now Ken Calvert of California, our colleague, has introduced a bill, H.R. 1245. I'm a cosponsor of it. And it will give a 10 percent credit, 10 percent of the home price, up to $15,000 for all homebuyers for 1 year. Now if we did that like they did back in 1975--and this was sponsored mainly by Democrats back in 1975--if we did that across the board for homebuyers up to $15,000, we would stimulate a huge movement towards home purchasing. Twenty-five percent of the people in this country say they want to buy a home within the next 10 years. We can move that up pretty rapidly if we extend the tax credit to $15,000 and allow everybody to get it for 1 year. And if we did that, I think that would go a long way toward solving the economic problems we are facing right now. Right now, what we are doing is we are throwing money at the problem, and we are hoping that that will solve it. It is probably going to help a little bit in the short run. But in the long run, if we really want to stimulate economic growth and activity, we have to get the free market working again. And the best way to do that in my opinion, and I'm saying this to my Democrat colleagues as well as my Republican colleagues, is to give an incentive for people to buy homes, not just first-time homebuyers, but everyone who would like to buy a home or move into a better one.

So if we allow, say, a 10 percent tax credit up to an amount of $15,000 for just 1 year, I think you would see a huge movement in the purchase of homes in this country, and it will really help the economy.

Now the realtors of this country and the homebuilders of this country really need help. They want this bill. They think it is extremely important. They are out here this week and they are going to be talking about it. So I would like to say to you, Don, and all my Democrat colleagues and my Republican colleagues, let's get together on this one. We can fight on something else. But right now we have an opportunity to really stimulate home purchases in this country and get this economy moving more rapidly in the right direction.

So I hope you will join with me in cosponsoring Ken's bill, H.R. 1245, and I'll be glad to sign any of you up tonight.

Mr. Speaker, first let me thank my good friend and a valued member of the House Armed Services Committee, Walter B. Jones of North Carolina, for introducing the first bill in the House to fix the first time homebuyer tax issue for our servicemembers. Mr. Jones is a good friend of the military, and I was proud to join him in this effort.

Let me also thank Ways and Means Committee Chairman Charlie Rangel, a Korean war veteran and supporter of our troops, for recognizing that we needed to improve the Federal Tax Code for military personnel and their families and for wrapping together several related tax bills into the legislation we are considering today, the Service Members Home Ownership Tax Act.

The first time homebuyer tax credit, which was enacted as part of the American Recovery and Reinvestment Act, has been popular with the American people and has had a positive impact on the economy.

Since the tax credit took effect, home sales have increased and there have been glimpses of price stability in the housing market. While much work remains before a full recovery can be achieved in the real estate sector, this tax credit has produced results.

To qualify for the tax credit, a first time homebuyer must meet certain criteria, including a stipulation that he or she live in the house as a primary residence for 3 years or be forced to repay the credit to the Federal Government.

For those military personnel, Foreign Service officers, and intelligence officers who wish to purchase their first home but who might be required by government orders to move duty stations within a 3-year window, this stipulation has proven problematic.

To fix it, I recently co-authored the Service Members Home Ownership Tax Act, which would waive the repayment clause if the servicemember, State Department official, or intelligence officer receives official orders and is forced to sell his or her house within that 3-year window.

The measure would also allow qualifying Defense and State Department personnel and intelligence personnel who have served outside the United States for at least 90 days in

2009 to have an additional year to participate in the first time homebuyer tax credit, which is currently scheduled to expire on November 30, 2009.

In addition to these particular changes, the legislation would ensure that certain payments under the Department of Defense Homeowner's Assistance Program are exempt from taxation.

The Service Members Home Ownership Tax Act is important for our troops and their families and would foster economic activity in areas near military bases. I urge its quick passage in the House of Representatives.

Mr. Speaker, I yield myself such time as I may consume. Since September 11, American military, diplomatic and intelligence personnel have seen extended and recurring deployments in support of contingency operations in Iraq and Afghanistan. These brave Americans have answered the call and, at the drop of a hat, gone off to defend this great Nation in a most consequential time. This House and the American people are extremely grateful for their courage and sacrifice.

Today, as we rotate personnel home from Iraq and contemplate increasing force levels in Afghanistan, Congress can ease the transition for those in uniform by ensuring existing homeownership tax incentives are flexible for their circumstances. This bill does that. It modifies the existing first-time homebuyer tax credit to make it fairer for military and diplomatic families deploying overseas or returning home who, under the way the current credit is written, may be unable to take advantage. These provisions are based heavily on language included in bills that many, including my colleague from Louisiana, Charles Boustany, and from North Carolina, Walter Jones, have championed for some time.

The bill also helps military families relocating as part of the Base Realignment and Closure, or BRAC, process. As DOD has transformed its base infrastructure, many service families have had difficulty selling homes adjacent to military installations because of declining values and an unprecedented slowdown in the housing market. In the stimulus bill, Congress provided relief in the form of a one-time funding increase for DOD's homeowners assistance program, which provides housing payments to these military families to help with relocation. H.R. 3590 clarifies that military families will not be taxed on these additional benefits.

In closing, Mr. Speaker, this is a good bill, and I'm proud to lend my support to it today. I'm hopeful the Senate will quickly approve the legislation so the President can sign it into law. We owe our men and women in uniform, as well as the families that support them, nothing less.

I reserve the balance of my time.

At this time I yield 2 minutes to a distinguished member of the Ways and Means Committee, the gentlewoman from Florida (Ms. Ginny Brown-Waite).

At this time I yield 2 minutes to the gentleman from North Carolina (Mr. Jones).

We have no further speakers at this time. I reserve the balance of my time.

I continue to reserve the balance of my time.

Mr. Speaker, I would just yield back the balance of my time and urge support for H.R. 3560, the Service Members Home Ownership Tax Act of 2009.