In an effort to help promote home sales, Senator Johnny Isakson, R- GA, introduced legislation to provide a tax credit to homebuyers. The legislation, S. 2566, would provide a $15,000 tax credit on new homes purchased between March 1, 2008 and February 28, 2009. It would also apply to new homes where the building permit was issued and construciton began on or before September 1, 2007. Additionally, the legislation would provide the same tax credit to owner-occupied homes whose first mortgage is currently in default, and single family homes that have been foreclosed on and is owned by the mortgagor or its agent. This legislation applies to homes that will serve as the primary residence for the owner.
As of March 3, 2008, S. 2566 has 23 co-sponsors, and a hearing in front of the Senate Finance Committee is expected soon.