WORLD PROPERTY CHANNEL ®

Barack Obama

(WASHINGTON, D.C.) -- Congress rolled in high gear today, passing three big economic-boosting bills and giving a new buying incentive to existing homeowners. President Barack Obama is expected to sign the new legislation, H.R. 3548, tomorrow (Nov. 6).

Here is what happened:

• Tax credit of $8,000 to first-time homebuyers extended from Nov. 30, 2009 to April 30, 2010. (Extension)

• Unemployment benefits extended from the end of this year to 14 weeks in all states and 20 weeks in hardest-hit jobless states. (Extension)

• Companies given more leeway to apply losses to previous year's income, allowing them to qualify this year for total $33 billion in tax refunds. (New)

• Buyers who have owned their residence for at least five years and want to move up to a new home will receive a $6,500 tax credit. (New)

• Buyers who can qualify for the credit are couples earning up to $225,000 a year and individuals earning up to $125,000. That's up from the current $75,000 limits for individuals and $150,000 for couples.  (New)

• Homes valued at more than $800,000 do not qualify for tax credits.  (New)

• The bill is estimated to funnel $45 billion into the economy this year. (New)

Sen. Christopher Dodd (D-CT)

The House of Representatives approved the measures today by a vote of 403 to 12. All 12 House members voting against the bill are Republicans. The Senate passed the bill yesterday, Nov. 4, in a 98 to 0 vote.

"Every economist will tell you we have to have to steady the housing market before the economy will turn around," said Sen. Christopher Dodd (D-CT). "We couldn't afford to let this tax credit expire now."

Washington Democrat Jim McDermott told Bloomberg, "The homebuyers' credit has helped pave the way for stabilization in the housing market and contributed to three consecutive months of rising home prices ... Its extension (today) will continue to make home ownership more affordable and bring confidence to a housing market and economy that remain fragile."

Rep. Steny Hoyer, (D-MD)

House Majority Leader Steny Hoyer, a Maryland Democrat, called the jobless provision "an investment that pays off for all of us" because "money provided by unemployment insurance quickly goes into necessities and boosts local economies."

On the new break for companies qualifying for refunds, Rep. Kevin Brady, a Texas Republican, said the measure would provide "an immediate cash infusion to struggling businesses" and "free up additional payroll to help get more Americans back to work."

Criticizing that part of the  bill, however, was Rep. Lloyd Doggett, a Texas Democrat.  He called the provision "a corporate giveaway to those with good lobbyists ... If it were a good idea, why not offer it (also) to workers who have lost their jobs and give them back some of the taxes that they paid when they had a job?"

Rep. Kevin Brady (R-TX)

The bill would not add to the federal budget deficit, according to congressional estimates, in part because it would be financed by delaying until 2018 a tax break for multinational corporations related to taxes they pay abroad.

The legislation would also extend a 0.2 percent employer payroll surtax that otherwise would have expired at the end of the year.

That provision drew complaints from the U.S. Chamber of Commerce, the National Federation of Independent Business and other business groups that said in a letter it "would increase the tax burden on employers just as they are deciding whether to add employees in 2010 and 2011."  

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