CALL TO ACTION - NYS Homebuyer Tax Credit 2009

We only have two weeks left --- please let our New York State legislative persons know that you support the Homebuyer Tax Credit. Please find below a sample letter you can use.

Subject: Please Support $7,000 Homebuyer Tax Credit

As a constituent, I am asking for your support on a critical piece of legislation that would provide a personal income tax credit for the purchase of a home in New York State (A.7125 by Assemblyman Vito Lopez/S.3900 by Senator Joseph Addabbo). With just two weeks left in the 2009 Legislative Session, your support is critical.

Under this legislation, homebuyers would be able to receive a $7,000 New York State personal income tax credit that would be returned to the homeowner over the course of their first three years of homeownership, dependent upon their tax credit eligibility. This tax credit would be applied to the purchase of a one or two family house, townhouse, condominium or cooperative apartment that was purchased for one million dollars or less. The homeowner must reside in the property for at least six months of each year to receive the tax credit.

In light of the current housing and economic crisis, this proposal to ease the tax burden paid by homebuyers is a significant step towards stimulating the New York housing market and revitalizing the economy. Over the past year, sales of single family homes in New York State have dropped over 25% and the statewide median sales price has plummeted by more than $22,000 over the past two years.

This State tax credit will work in conjunction with the temporary $8,000 federal housing tax credit, set to expire on December 1, 2009, further stimulating the New York housing market and economy. Increased home purchases will reduce current inventory and lead to production of new housing, resulting in a recovery from the currently depressed building and construction economic sectors. This will ultimately generate additional tax revenue for New York State government from increased income taxes tied to construction employment, increased real estate mortgage recording and real estate transfer taxes, and increased sales tax revenue on items associated with a home purch ase including home furnishings and durable goods such as refrigerators, washing machines, clothes dryers, etc.

Just this year, California enacted a $10,000 homebuyer tax credit, Utah passed a $6,000 new homebuyer tax credit, and 14 other states have introduced home buyer tax credit legislation. New York State is competing with states such as these to lure and retain a young and well-educated workforce and enacting this legislation is a definitive step in the right direction.

In order to retain a qualified workforce, sustain our economy and strengthen our communities, we must make homeownership more affordable to the average homebuyer. I urge you to become a sponsor of A.7125 by Assemblyman Vito Lopez/S.3900 by Senator Joseph Addabbo and help bring this bill to a vote before the end of the 2009 Legislative session. Time is of the essence and the economy in New York State cannot afford to wait.

Thank you.