WASHINGTON, DC – October 8, 2009 – (RealEstateRama) — Congressman Steve Kagen, M.D. is building a better future for our veterans and their families. Today, Congress passed the Service Members Home Ownership Tax Act of 2009 (H.R.3590) which included a bill Kagen co-authored extending the first-time homebuyers tax credit for one year for members of the Armed Forces serving overseas in 2009.
“Our men and women in uniform and their families have sacrificed so much – they should not have to miss out on this opportunity,” said Kagen. I am working hard to guarantee that our veterans receive the benefits they have earned. This bill will help our economy by stimulating housing sales and help our veterans build a better future for themselves when they return. They have our backs and we must have theirs.”
Kagen authored the bill (H.R. 2562) with Wisconsin Congressman Ron Kind.
The Service Members Home Ownership Tax Act of 2009 will extend the $8,000 first-time home buyers tax credit for one year for members of the Armed Service who deployed overseas for 3 months or more in 2009, waive the repayment clause if a service member has to sell their house within 3 years due to official orders and ensures that certain payments from the Department of Defense Housing Assistance Program (HAP) are exempt from taxation.
Congressman Kagen was inspired to write this legislation in April after hearing from Jerry Kavanaugh of Kaukauna. Jerry is the father of Dave Kavanaugh, who is a member of the National Guard serving in Southern Iraq with the 32nd Infantry Combat Brigade out of Appleton. Dave wants to be able to purchase a new home for his family when he returns from his deployment, but under current law, he will not qualify for the tax credit when he returns home next spring. The $8,000 non-refundable tax credit will help Dave, and thousands of other men and women serving overseas, buy their first homes.
“It is an honor to be able to deliver for Dave and his family after all they have done for our country,” said Kagen.
There are about 350,000 service men and women deployed overseas who might be eligible to take advantage of this program.
1.4 million people have taken advantage of the tax credit since enactment. The cost of home ownership is estimated to have decreased 5% in Mid-west as a result of this the First Time Homebuyers Tax Credit. The National Association of Realtors estimates that 350,000 people bought a new home solely because of this tax credit.