Chairman Rangel Introduces Bipartisan Bill to Help Service Members Take Full Advantage of Homebuyer Incentives

WASHINGTON, D.C. - Ways and Means Committee Chairman Charles B. Rangel (D-NY), with 28 additional original cosponsors, today introduced H.R. 3590, the Service Members Home Ownership Tax Act of 2009, which would make certain changes to the tax code with respect to provisions included in the Recovery Act to improve how those provisions apply to service members (i.e., members of the uniformed services, members of the Foreign Service, and intelligence employees).

"America's service members devote their lives to our national security," said Chairman Charles B. Rangel (D-NY). "Congress should do everything we can to ensure that service members are able to take full advantage of the programs we enact. This bill will improve how certain provisions under the Recovery Act apply to America's service members and I hope it will see swift passage in the House and Senate so it can get to the President's desk as soon as possible."

The legislation would ensure that certain payments under the Department of Defense Housing Assistance Program (HAP) are exempt from tax. 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.

Finally, 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 legislation will not add to the deficit.

Click here for a summary and the legislative text of the bill.

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