Moore Acts To Fix Unfair Loophole In Homebuyer Tax Credit

Press Release

U.S. Congresswoman Gwen Moore (D-Milwaukee) today introduced legislation to correct an unfair loophole in the repeat homebuyer tax-credit that was brought to her attention after a recently-married Milwaukee nurse found she was ineligible for the tax credit despite having lived in her north Milwaukee home for 11 years, more than twice the 5 years required by statute.

Congresswoman Moore said, "Our government shouldn't be in the business of penalizing people for getting married -- especially in the homebuyer tax credit. It is common that after getting married, people buy homes."

Moore was contacted by a constituent, Tonya Rutherford, who was looking to take advantage of the tax credit that was extended to repeat homebuyers for the first time in November. She quickly found out she was ineligible for the tax credit because her new husband did not also own and live in her home.

To qualify for the credit under current law, both spouses must have owned and used the same previous principal residence for five consecutive years. The way it is written unfairly excludes newly married couples and even couples who have been married many years but live separately.

To fix this, Moore's legislation would simply change the law so that only one spouse has to meet the tax-credit's residency and occupancy requirements and qualify for a $3,250 credit, the maximum individual amount.

Just today, the National Association of Realtors announced that existing home sales dropped nationally this month. Moore continued, "My bill will help move home sales in the right direction by letting more people just like Tonya take advantage of this tax credit."

Individuals and couples must buy a home by the end of April to qualify for the credit and can file an addendum to their 2010 taxes through the end of the year to receive it.

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