Homebuyer Tax Credit Expansion Act of 2009

Mr. Speaker, like many parts of the country, the Kansas housing market has struggled along with our Nation's economy. One important tool that has strengthened the housing market and has limited the economic decline has been the $8,000 first-time homebuyer tax credit. However, unless Congress takes immediate action, this valuable credit will expire on November 30.

I come here with a message for my colleagues and the leaders of the House of Representatives: Congress must act quickly to renew the first- time homebuyer tax credit.

A Realtor from Manhattan, Kansas, wrote me about the importance of the homebuyer tax credit. She noted that the credit had been extremely helpful to the Kansas economy. She says: During these challenging economic times, the first-time homebuyer tax credit has injected new life into the housing market and has helped stimulate many local economies through the stabilization of housing prices.

However, our housing market remains fragile, and more progress is needed to further stabilize our communities. The homebuyer tax credit works. Since its enactment in February, the IRS has reported more than 1.4 million taxpayers have claimed the homebuyer credit. This incentive will lead 400,000 prospective first-time homebuyers to purchase homes who probably would not have without the help of the tax credit.

Moreover, it's estimated that each sale generates $63,000 in additional goods and services that benefit the economy. There are tax savings for taxpayers which generate more revenue than the aggregate amount of the original tax cut. Along with falling home prices, the homebuyer credit has helped put the housing market on the track to recovery.

While market conditions have improved, as the Realtor says, the market remains fragile. The housing tax credit needs to be extended to make sure that the economic gains that have been made are not lost.

In order to build on that economic progress, the tax credit should be expanded. I've introduced H.R. 2905, the Homebuyer Tax Credit Expansion Act of 2009, which would extend the $8,000 tax credit beyond its November 30 expiration. In addition, this legislation would expand the tax credit to all homebuyers, not just to first-time buyers.

I've asked the Speaker of the House and the chairman of the Ways and Means Committee to bring this bill or similar legislation to the floor for a vote. At the very least, Congress should pass a 1-year extension of the credit before it expires. It can take several months to go from contract to closing, and the tax credit will soon become unavailable for many buyers well before the November 30 expiration date. An extension must be passed soon if homebuyers are going to continue to take advantage of the tax credit.

Homeownership and the knowledge that one has equity in one's home can

significantly improve our economy. We should not allow this important tax credit to expire. Congress must act quickly now to renew the first- time homebuyer tax credit.