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Sen. Johnny Isakson, R-Ga., introduced S. 1230, the Homebuyer Tax Credit Act of 2009. The bill would increase the maximum amount of the credit from $8,000 to $15,000 and expand the current tax credit so that it applies to any buyer of any home, not just first-time buyers. It would also eliminate income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit so that there is no income limit for eligibility. The bill would also extend the tax credit for one year from date of enactment and would still allow home buyers to claim the credit on their 2009 tax return for purchases made in 2010.

“The first-time home buyer tax credit has made a difference,” Isakson said in introducing the bill. “First-time home buyers used it and the market stabilized, but we don't have a recession in first-time home buyers. We have a recession in the move-up market. One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can.”

MBA Chairman David Kittle, CMB, issued a statement yesterday in support of S. 1230.

"Stimulating the housing market is one of the best ways Congress can help accelerate the recovery of our national economy,” Kittle said. “Offering $15,000 to potential home buyers is a powerful incentive that I believe will jump-start the housing market.”

Kittle noted that the current $8,000 credit for first-time buyers has had a positive effect on the housing market this year. Increasing the amount and expanding the benefit to include all home buyers, he said, would have an even larger impact in spurring the housing market and stabilizing the economy.

"As this bipartisan proposal moves forward, we hope that policy makers will make the tax credit refundable as a tax refund if the person's tax liability is less than the amount of the credit, so borrowers can take full advantage of this benefit,” Kittle said. “In addition, we believe that the tax credit ought to be made available at the closing table. One of the greatest hurdles for many home buyers is saving money for their down payment. If this money could be made available at the closing table, as FHA has done with the existing tax credit for first-time home buyers, it will have the potential to help even more borrowers."