Congressman Barney Frank
Representing Massachusetts' 4th District

House Passes Legislation to Expand Homebuyer Incentives for Veterans
October 8, 2009

Washington DC - Today, the U.S. House of Representatives passed legislation that would make it easier for veterans to take advantage of first-time homebuyer tax incentives.

The Service Members Home Ownership Tax Act (HR 3590) extends the deadline for military personnel to take advantage of the $8,000 first-homebuyer tax credit.  It is intended to help service-members currently stationed overseas who might otherwise miss this opportunity.

The legislation also addresses a provision in the current law meant to prevent buyers from using the tax credit to quickly buy and sell homes at a profit.  If a buyer who takes advantage of the tax credit sells the house within three years, he or she must repay the amount of the credit.  Because service-members are often forced to sell homes when they are deployed overseas they will be offered an exemption from this rule.

Moreover, the bill eliminates taxes on payments made to military personnel under the Defense Housing Assistance Program (HAP) in order to help them sell homes that have declined in value.

This legislation is a small part of a larger push by the Democratic Congress to support America’s veterans. Provisions for veterans contained in the stimulus and supplemental bills increase veterans funding by $1.4 billion. The G.I. Bill of the 21st Century is already public law.  The House has also passed bills to prevent and end veteran homelessness (HR 1171) and support veteran caregivers (HR 3155).