Grassley Works for Tax Relief for Home Owners, Buyers and Builders

Press Release

GRASSLEY WORKS FOR TAX RELIEF FOR HOME OWNERS, BUYERS AND BUILDERS

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) have put together a package of tax relief measures for homeowners, homebuyers, and homebuilders to be included in bipartisan Senate legislation aimed at helping the housing market recover. The Baucus-Grassley tax provisions, expected to total nearly $11 billion over 10 years, would create a standard property tax deduction for homeowners who do not itemize their federal taxes, provide a substantial credit to buyers of foreclosed homes, and allow companies losing money in the economic downturn - such as America's homebuilders - to write off more of their current losses. Mortgage revenue bonds will help homeowners and buyers obtain affordable loans.

"A lot of irresponsible actions led to the housing crisis, but a lot of responsible homeowners, homebuyers, and homebuilders are caught up in it too. Tax relief and mortgage help for folks who are playing by the rules in the housing market is the right thing for Congress to do," said Baucus. "These tax provisions will keep property values up, keep folks in their homes, and keep businesses afloat, and those are all keys to handling the housing crisis."

Grassley said, "Tax relief helps encourage home ownership, and addressing the housing problem can help the economy overall. It's appropriate to use the tax code to help people buy homes and to help the many businesses that are tied to the housing industry recover from losses. Those businesses create jobs. The economy should benefit from this shot in the arm."

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