New Home Buyers Tax Credit Revised

February 5, 2009

Last evening the United States Senate unanimously passed a bipartisan
amendment, offered by REALTORR Champions, Senators Johnny Isakson (R-GA) and
Joe Lieberman (ID-CT) to the Economic Stimulus Bill creating a $15,000 tax
credit to individuals who purchase a home in the next year.

Specifically, the Isakson-Lieberman amendment to the pending economic
stimulus bill would provide a direct tax credit to any homebuyer who
purchases any home. The amount of the tax credit would be $15,000 or 10
percent of the purchase price, whichever is less. Purchases must be made
within one year
of the legislation's enactment, and the tax credit would not have to be
repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income
tax return. It also seeks to prevent misuse by only allowing purchases of a
principle residence and by recapturing the credit if the home is sold within
two years of purchase. The amendment would sunset the current $7,500
housing tax credit on the date of enactment.

While the final details of the Stimulus Bill are still being debated, this
amendment represents a tremendous step forward in NAR's efforts to stabilize
housing markets around the nation. Because of the efforts of REALTORSR, we
expect the final Economic Stimulus Bill will contain several major
housing provisions. We will continue to update you as the bill progresses
through the legislative process.