Staten Island, NY – September 28, 2009 – (RealEstateRama) — Rep. Michael E. McMahon wants to extend the $8,000 first-time homebuyers tax credit which will expire by the end of November.
“We need to continue to boost our housing market, and this is one of the most effective ways we can do this,” said Rep. Michael E. McMahon. “This tax credit is critical to many hard-working individuals who would otherwise be unable to buy a home without it. So many Staten Islanders and Brooklynites are feeling fiscally constrained and we need to provide them with an incentive. Continuing this tax credit allows all potential purchasers to move forward with the purchase of a new home.”
“Further, the real deadline to take advantage of this tax credit is much earlier – most likely in October – because homebuyers need to allow ample time for the contracts on their new houses to be finalized in advance of the November 30th deadline,” continued McMahon. “It makes sense to extend this and I hope the President signs one of the bills currently circulating, which will do just that.”
According to the IRS, approximately 1.4 million people have taken advantage of the tax credit. A recent National Association of Realtors report, however, indicated that home sales, which had been increasing for the months April through July, fell in August by 2.7 percent.
Extending the first-time homebuyers tax credit has been an important issue for Rep. McMahon since taking office in January. As part of the American Recovery & Reinvestment Act of 2009, the Senate Finance Committee modified the first-time homebuyer tax credit by extending the credit’s expiration date, set for June 30, 2009, until August 31, 2009. In February, Rep. McMahon urged House Ways and Means Committee Chairman Charles Rangel to extend the credit even further – specifically to the end of 2009 since summer and early fall are traditionally active season for home purchases. As the deadline to take advantage of this credit steadily approaches, another extension is needed in order to continue to boost the country’s housing market.
