First Time Homebuyer Tax Credit Extended for Military Personnel

by Jay Myers on October 17, 2009

Service Members Home Ownership Tax Act of 2009

Two of the hottest topics here at My Denton County Real Estate in the past 6 months has been the discussion of the $8000 First Time Homebuyer Tax Credit and the Texas Veterans Land Board. Now a a new bill unanimously passing the House of Representatives, and soon to be up for a vote on the Senate floor allows me to right a new post directly marrying the two together.

Bill H.R. 3590 will extend the $8,000 FTHB¹ Tax Credit until November 30, 2010 for members of the uniformed services, the Foreign Service, and employees of the intelligence community on official extended duty. Those meeting the underlying requirements for the credit must also have been serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year.

It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected once this is passed into law. This is one I feel everyone can get behind — There seems to be a lot of talk from political pundits, the news media, and even a lot of REALTORS® that believe the tax credit is just “giving money away” or “creating debt for our children and grandchildren.” I am not sure any of them realize that in order for our economy to have gotten any better money needed to be moving and changing hands.

My opinion on that is — a incentive for would be homeowners is much better than more bail-out money thrown to banks and insurance companies.

This has happen during the Summer of 2009 and the tax credit is a big part of that, this is evident when looking at the house inventory here in Denton County Texas in the first time buyers price range² — it is very thin!

As I have said in previous articles, I am not in favor of an expansion of the tax credit, and only a short term extension, I believe till April or May of 2010 is adequate to solidify the industry a bit more. This is why I did not sign the generic form letter petition offered to real estate agents who are part of the National Association of REALTORS. It was asking for too much, and for too long, I think it was just going to keep the lobbyist hobnobbing petitioning the elected officials working more than it could keep me working.

I digressed — Regardless of what happens with tax credit being extended or expanded for everyone else; I am glad, and hopeful to help more Veterans take advantage of this incentive who may be returning home, or making Texas their new home.