Washington, D.C. -— U.S. Rep. Bob Etheridge announced today that his office joined with 29 others late last week to introduce H.R. 3590, the Service Members Home Ownership Tax Act of 2009.
The act would help individuals serving our nation overseas by making specific changes to the tax code provisions included in the American Recovery and Reinvestment Act to improve how those provisions apply to service members, including members of the uniformed services, members of the Foreign Service, and intelligence employees.
“America’s service members give everything they have got for our national security,” said Rep. Etheridge. “The homebuyer tax credit has helped more than 1 million Americans buy homes and has helped our housing market recover. Those who protect our nation overseas should have the same support to help them buy a new home. This legislation makes sure that service members are able to take full advantage of the benefits available to all Americans.”
The bill would extend for one year the deadline for utilizing the first-time homebuyer credit for qualifying service members. This provision helps ensure that service members who are stationed overseas can take full advantage of the credit when they return. The credit is currently scheduled to expire on November 30, 2009. The bill would also ensure that service members will not have to repay the first-time home buyer credit if they are called up for service overseas and forced to sell their home within three years of purchasing.
Additionally, the legislation would ensure that certain payments under the Department of Defense Housing Assistance Program (HAP) are exempt from tax.
The legislation will not add to the deficit.