Paul L. Caron

Saturday, July 26, 2008

Senate Passes Housing Tax Relief Bill

The Senate today passed, by a 72-13 vote, the housing stimulus bill (H.R. 3221, The American Housing Rescue & Foreclosure Prevention Act).  The House on Thursday had approved the measure by a 272-152 vote after President Bush earlier in the day dropped his veto threat and urged Republicans to support the bill.  There are four main tax cuts in the $15.1 billion tax package:

  • Refundable tax credit for first time home buyers (10% of the purchase price, up to a $7,500 credit)
  • Additional standard deduction for real property taxes for non-itemizers ($500 single/$1,000 joint)
  • Expansion of Gulf Opportunity Zone incentives
  • Temporary increase in the low-income housing tax credit

The major tax increases in the package are:

  • Information returns for merchant payment card reimbursements
  • Delay implementation of worldwide allocation of interest until 2011
  • Modification of the § 121 exclusion of gain on sale of a principal residence

For further explanation of these tax provisions, see:

For press and blogosphere coverage, see:

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» Congress on Real Estate from taxmonkey: Where "Cash is King"
The problems with the real estate market are undeniable. Congress has stepped in with a $15.1 billion package of incentives creatively coined the Housing Assistance Tax Act of 2008 H.R. 3221. Some items of interest: Property tax deduction for non-itemi... [Read More]

Tracked on Jul 29, 2008 9:44:52 PM


This is just going to delay the inevitable as I wrote in my analysis of the housing bill. Short term relief for greater long term pain.

Posted by: AndyS | Jul 27, 2008 8:17:48 PM