House Passes Bill to Help Service Members Take Full Advantage of Homebuyer Incentives

WASHINGTON, D.C. – With unanimous bipartisan support, the House of Representatives today passed H.R. 3590, the Service Members Home Ownership Tax Act of 2009 by a vote of 416-0.  H.R. 3590, introduced by Ways and Means Committee Chairman Charles B. Rangel (D-NY), would make certain changes to the tax code to improve how certain provisions included in the Recovery Act apply to service members (i.e., members of the uniformed services, members of the Foreign Service, and intelligence employees).

"This bill makes sure that the brave men and women who put their lives on the line every day get to enjoy the same benefits as every other American who benefits from their service," said Chairman Charles B. Rangel (D-NY).   "By extending the first-time homebuyer tax credit for service members overseas, we give these families more time to utilize the benefit, while also helping our economy continue its recovery.  I thank my colleagues for supporting this important legislation and look forward to working with the Senate to deliver this bill to President Obama for his signature."

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

Finally, 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 and forced to sell their home within three years of purchasing.  The legislation will not add to the deficit.

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