NLBMDA applauds adoption of home buyer tax credit amendment

The National Lumber and Building Material Dealers Association (NLBMDA) applauds the adoption last night by a voice vote of the United States Senate of a home buyer tax credit amendment to the Senate’s version of the pending economic stimulus legislation. Specifically, the amendment, introduced by Sens. Johnny Isakson (R-GA) and Joseph Lieberman (I-CT) 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.

“NLBMDA applauds the adoption of the Isakson-Lieberman amendment and thanks the Senators for their leadership on this issue,” said NLBMDA President and CEO Michael O’Brien. “We believe, if adopted in the final stimulus package, the tax credit could go a long way toward reviving the housing economy by encouraging more home purchases, creating new jobs and restoring consumer confidence in the housing market.”

NLBMDA and the Fix Housing First coalition continue to advocate for additional housing stimulus measures, specifically the adoption of an amendment to provide discounted 30-year fixed-rate mortgage financing for eligible homebuyers.

“NLBMDA believes the combination of the expanded homebuyer tax credit coupled with access to discounted mortgage rates in the range of 4% will go a long way toward economic recovery,” said O’Brien.

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The National Lumber and Building Material Dealers Association (NLBMDA) represents its members in the national public policy arena, with emphasis on efforts to 1) promote the industry and educate legislators and public policy personnel; and 2) assist legislative, regulatory, standard-setting and other government or private bodies in the development of laws, regulations and policies affecting lumber and building material dealers, its customers and suppliers. Founded in 1917, the Federation has over 6,000 members operating single or multiple lumber yards and component plants serving homebuilders, subcontractors, general contractors, and consumers in the new construction, repair and remodeling of residential and light commercial structures. For more information, go to www.dealer.org.