House Extends Homebuyer’s Tax Credit for Deployed Troops

Legislation that would extend the first-time homebuyers’ tax credit by one year for military and key civilian personnel deployed abroad this year sailed through the House on Thursday.  The bill, passed by 416-0, would give members of the armed forces, Foreign Service and intelligence agencies who were posted abroad for at least 90 days another year to use an $8,000 first-time homebuyer’s tax credit that is currently set to expire Nov. 30.

The bill also would bar the IRS from recapturing the credit from qualifying individuals who must sell a residence after Dec. 31, 2008, because of government orders for extended duty. The law currently requires the buyer to live in the home for 36 consecutive months.

“As we rotate personnel home from Iraq and contemplate increasing force levels in Afghanistan, Congress can ease the transition for those in uniform by ensuring existing home ownership tax incentives are flexible for their circumstances,” said Dave Camp of Michigan, the top GOP member on the House Ways and Means Committee. “This bill does that.”

Camp said he hoped the Senate would quickly approve the legislation so President Obama can sign it into law.

The tax credit was included in the economic stimulus law; an effort is under way by its supporters in Congress to extend it for everyone. But it is not at all certain that drive will succeed.

Meanwhile, members are hoping to protect deployed troops and others as best they can. Ways and Means member Earl Blumenauer , D-Ore., said, “Those serving our government should not have to choose between their job and their home.”