While some industries are fighting for tax breaks for themselves, homebuilders are fighting for tax breaks for the people who buy their products.
Heath Van Natter is a local homebuilder who also works with the National Association of Home Builders, and has done everything he can to keep his company going during a sluggish economy.
Despite the importance of the home-building industry to America, homebuilders have received few, if any, tax credits from the federal government. One of the primary points of contention is whether spec homes should count as inventory.
"We have addressed this with Congress, and congressman Dan Burton understands this completely," Van Natter said. "They can't get anything done because they are in the minority. Housing is what got us in the recessions, and it is what is going to get us out."
Despite the potential of saving thousands if its members were given tax credits on spec homes, the NAHB has really focused its efforts on getting tax credits to homebuyers.
"I don't think we are looking for a handout," Van Natter said. "We pushed a $10,000 tax credit to homebuyers - not first-time but all homebuyers. That wasn't helping homebuilders personally, but it helps homebuyers, which helps homebuilders."
Burton agrees with Van Natter and the NAHB, and he is cosponsoring legislation to give all homebuyers a $15,000 tax credit or 10 percent of the purchase price, whichever is less.
"The housing industry is in a depression right now, and we need more than just the $8,000 tax credit for first-time homebuyers," Burton said.
The legislation would prevent misuse by forcing the person to repay the credit if the house is sold within two years of being purchased. The legislation would also sunset the original $8,000 credit to first-time homebuyers.
The $15,000 homebuyer tax credit will result in nearly 500,000 additional home sales and create 255,000 new jobs in the year ahead, according to research conducted by the NAHB.
In addition to the 255,000 jobs created during the first year, NAHB estimates that the additional half million home sales will generate the following:
$12.3 billion in wages and salaries
$9.7 billion in net business income
$6.6 billion in federal taxes, and
$2.1 billion in state and local taxes







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