PASCRELL APPLAUDS COMMITTEE APPROVAL OF FISCALLY RESPONSIBLE HOUSING TAX ASSISTANCE ACT
LEGISLATION WILL BENEFIT NEW HOME BUYERS, PROVIDE PROPERTY TAX RELIEF, EXPAND LOW INCOME HOUSING
U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) a member of the House Committee on Ways and Means today applauded passage of legislation that will boost the housing economy by providing a tax credit for first-time home buyers, provide property tax relief and increase low income housing opportunities. The legislation adheres to pay-as-you-go budget principles by providing $11 billion in revenue raising offsets to cover the cost of the legislation.
"I applaud Chairman Rangel for moving legislation that will help new home buyers enter the housing market at a time when housing inventories in our communities continue to increase and prices continue to decline," stated Pascrell.
The Housing Tax Assistance Act would create a refundable $7,500 tax credit for first-time home buyers with a phase out for individuals making more than $70,000 or couples making more than $140,000. The credit is a no-interest loan that must be paid back to the federal government over the course of a 15 year period and is expected to reach about 1.25 million new home buyers.
The legislation also provides property tax relief in the form of a $350 deduction for individual home owners who do not itemize their deductions and a $700 deduction for married couples who do not itemize deductions. It would also provide states with more credits for the development of low income housing.
"For the people I represent in New Jersey the property tax deduction in this bill will be a particularly effective tool for stimulating the economy. It is also critically important that the federal government step in to help states create low income housing opportunities for the millions of families who have been hurt by the recent economic downturn," concluded Pascrell.