Senate approves $15,000 tax credit for homebuyers

The Senate recently passed a bill allowing a $15,000 tax credit (actually an increase from the existing $7,500 tax credit) to home buyers that purchase a home in 2009. This bill was passed in an effort to jump-start the real estate market. Passage of this bill is seen as a victory for Republicans eager to leave their mark on the mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan. The tax break was adopted without dissent.

Sen. Johnny Isakson, R-Ga., who advanced the home buyers tax break bill, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall. The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break for the purchase of new homes only. Isakson's office said the proposal would cost the government an estimated $19 billion. You can click here to view the actual bill.

For additional information, Q and A and discussion about this bill you may refer to the following links posted by: the Associated Press , Boston Globe , Zillow Blog , Yahoo Answers

What do you think about this bill? Do you think it will accomplish what it is designed to address?

Do you think it will have a significant impact on the Westside real estate market?