Boswell For Congress

Washington, DC – Today, Congressman Leonard Boswell introduced the Homeowner Tax Assistance Act which would repeal the repayment provision of the initial first-time homebuyer tax credit and provide a temporary 25 percent allowance for qualified residence interest deduction.

“Much has been done this Congress to spur home purchases and home construction, but I understand that there are many homeowners across the nation who are still facing tough times,” Boswell said. “This bill will provide important and much-needed assistance to existing homeowners by allowing them to keep more of their hard earned money, while also helping to stem the tide of foreclosures that plague many communities.”

When the Housing and Economic Recovery Act of 2008 first passed, the first-time homebuyer credit tax credit effectively acted as an interest free loan and required credit recipients to repay the credit over a 15-year period. Boswell’s Homeowner Tax Assistance Act will repeal this requirement on homes purchased between April 8, 2008 and January 1, 2009. Additionally, this legislation provides an additional 25 percent mortgage interest allowance for homeowners who deduct their mortgage interest, effectively allowing homeowners to deduct 125 percent of their mortgage interest when they file their taxes, thus reducing their taxable income.