Bill also supports local businesses with separate tax provision
Washington, DC – November 5, 2009 – (RealEstateRama) — Congressman Ron Klein (FL-22) today joined a bipartisan majority of his colleagues to support legislation that will strengthen South Florida’s economy. The bill, the Unemployment Compensation Extension Act of 2009 (H.R. 3548) has two critical provisions for our community. First, it extends tax credits for first-time homebuyers in order to continue to provide a crucial jolt to the real estate market and the South Florida economy. In addition, the bill supports local businesses by allowing a five-year carry-back on net operating losses.
The version of H.R. 3548 passed by the House today includes all Senate amendments, which sends the legislation directly to the President’s desk for signature.
“This bill is a major jolt to our economy in South Florida,” Klein said. “Not only does it support the crucial real estate industry by extending tax credits for homebuyers, it also supports local businesses who can now carry back a full five years of net operating losses on their tax forms.”
Today’s legislation continues and expands a successful program which encourages the buying and selling of homes in South Florida. Under the new law, more individuals will qualify for a homebuyer tax credit, which has been extended to home purchases under contract by April 30, 2010. First time homebuyers can claim a credit of $8,000 and homeowners who have previously owned, but are moving or upgrading can claim a credit of $6,500. Military veterans serving overseas have an additional year to claim the credit, and it is available to families with joint incomes of less than $225,000.
The bill passed by the House today also extends a provision in the American Recovery and Reinvestment Act which applied to small businesses, and expands it to apply to all businesses. The five-year net operating loss carry back provision allows businesses to carry-back net operating losses for up to five years for losses incurred during the recession. Businesses would be able to offset 50 percent of available income for the fifth year and 100 percent of all income in the remaining four years. This provision was a major priority identified by local businesses in South Florida.
“In these difficult economic times, we have to do everything we can to get families and businesses back on their feet,” Klein says. “By incentivizing home purchases and easing the tax burden on local businesses, we are taking real steps to get our South Florida economy back on track. I have met with dozens of constituents and professionals from these fields who have stressed the importance of today’s measures, and I am proud we were able to turn their ideas into the law of the land.”