The First-Time Homebuyer Tax Credit: An Economic Analysis (CRS Report for Congress)
A full-text PDF of the latest version is currently unavailable.
| Release Date |
Revised Oct. 30, 2009 |
| Report Number |
R40153 |
| Report Type |
Report |
| Authors |
Mark P. Keightley, Analyst in Public Finance |
| Source Agency |
Congressional Research Service |
| Older Revisions |
-
Premium Feb. 19, 2009 (17 pages, $24.95)
add
|
Summary:
This report analyzes the ability of the first-time homebuyer tax credit to stimulate home buyingand stabilize home prices. Because the tax credit may not be claimed until after a home purchase,it is unlikely that the tax credit will be of great help to a large number of potential homebuyersthat need down payment and closing cost assistance. In addition, the requirement that somehomebuyers must repay the tax credit greatly reduces the credit's effective value for those buyers.Lastly, as long as forecasts predict that home prices are falling and that the economy will remainweak, a large fraction of potential homebuyers may choose to remain on the sidelines with orwithout the tax credit.This report concludes with a review of policy options available to Congress. These optionsinclude modifying the tax credit's value, modifying the tax credit eligibility criteria, and allowingfor the tax credit to be advanced.This report will be updated as warranted by legislative events.
