What the bill says.............
Housing Assistance Tax Act of 2008
July 25, 2008
I. CURBING THE RISING COSTS OF OWNING A HOME
standard deduction for real property taxes. The bill would provide home
owners who claim the standard deduction
with an additional standard deduction for State and local real property taxes. The maximum
amount that may be claimed under this provision is $500 ($1,000 for joint filers). This proposal
applies for tax year 2008.
This proposal is estimated to cost $1.537 billion over 10 years.
II. REDUCING EXCESS SUPPLY IN THE MARKET
first-time home buyer credit.
The bill would provide a refundable tax
credit that is equivalent to an interest-free
loan equal to 10 percent of the purchase of a home (up to $8000) by first-time home buyers. The
provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009.
Taxpayers receiving this tax credit would be required to repay any amount received under this
provision back to the government over 15 years in equal installments. The credit begins
to phase out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case
of a joint return).
This proposal is estimated to cost $4.853 billion over 10 years.
increase in mortgage revenue bonds.
Under current law, there is a national limit on the annual amount of tax-exempt housing bonds that each state may issue. Many states have reached their limit. The bill would increase this national limit for both small and large population states in 2008 to allow for the issuance of an additional $11 billion of tax-exempt bonds to provide loans to first-time home buyers and to finance the construction of low-income
rental housing. The bill would
also temporarily allow qualified mortgage revenue bonds (a form of tax-exempt bond issued by
states to help provide financing to first-time home buyers) to be used to refinance certain
Some of the basic facts of H.R. 3221 are:
First-Time Home Buyer Tax Credit
In order to qualify for an FHA housing loan, applicants must meet
certain criteria, including employment, credit ratings and income
levels. The specific requirements are: