WASHINGTON – January 30, 2008 – U.S. Sen. John Cornyn, a member of the Senate Budget Committee, today signed on as an original cosponsor of S. 2566, legislation introduced by Sen. Johnny Isakson, R-Georgia, that proposes a new tax credit for homebuyers. The $15,000 tax credit would be distributed over a period of three years for any individuals purchasing a home that is new, foreclosed, or under pending foreclosure. Through this tax credit, Sen. Cornyn and the bill’s supporters hope to deliver an immediate boost to the housing market, based on the success of a similar tax credit issued in the 1970s.
“As it stands, America’s crippled housing market is beginning to cast its shadow on the rest of the economy, and we must act now to stop this harmful trend,” Sen. Cornyn said. “Taking a cue from recent history, I’m confident this homebuyer tax credit would revive our struggling housing market much like a similar credit did for the sinking market in the 1970s.
“There is no better medicine for a struggling economy than giving taxpayers more of their hard-earned money back, so they can spend and invest it as they know best. I hope my colleagues in the Senate will act swiftly and pass this legislation to provide a much-needed break to those families who, by purchasing new homes, are helping our housing market get back on its feet.”
Background:
S. 2566 will provide a direct tax credit for the purchase of a single-family home in the amount of $5,000 a year for three years on homes purchased between March 1, 2008, and February 28, 2009. Buyers must occupy the homes as their principle residences to be eligible, and purchases of homes from investors or by investors are ineligible. Homes eligible for the tax credit include:
- New homes where the building permit was issued and construction began on or before September 1, 2007;
- Owner-occupied homes whose first mortgage loan is in default; and A single-family home that has been foreclosed on and is owned by the mortgagor or its agent.
Sen. Cornyn serves on the Armed Services, Judiciary and Budget Committees. In addition, he is Vice Chairman of the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee’s Immigration, Border Security and Refugees subcommittee and the Armed Services Committee’s Airland subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.
