July 26, 2008

Washington, DC—Nevada Senator Harry Reid made the following statement today after the Senate passed the housing reform bill:

“After months of Republican stalling, we have finally passed the most sweeping housing legislation in decades. It addresses the root of the broader economic crisis – record-high foreclosures – by helping Americans keep their homes and keep their home equity.

“This is not a perfect bill, but we can be proud of our achievement here. I want to thank Senators Dodd and Shelby and Senators Baucus and Grassley for working in a bipartisan fashion to help craft it. I also would like to thank Secretary Paulson for helping the President see the light.

“I urge the President to sign this bill as soon as possible so the nearly 8,500 new families filing for foreclosure each day no longer have to wait for help.”

The tax title for the Housing bill includes a number of provisions that will be beneficial for Nevadans.

First-time homebuyer credit– a new, temporary tax credit for first-time homebuyers. The credit available is the lesser of 10% of the home’s purchase price or $7,500. The credit serves as an interest free loan which is paid back by the home buyer over the subsequent 16 years or when the home is later sold.

Mortgage Revenue Bonds- $11 billion in mortgage revenue bonds, which are tax-exempt bonds that can be used to finance affordable rental housing, loans to first-time homebuyers or refinance subprime loans. Nevadacan expect to get $99.8 million in additional tax exempt bond authority to use for these purposes.

Low Income Housing Tax Credits– a temporary increase in the amount of Low-Income Housing Tax Credits that are allocated to the states for 2008 and 2009. This temporary increase will provide more than $500,000 in additional credits to the State of Nevadato use to develop affordable housing.

Standard Deduction for Property Taxes– a new standard deduction for 2008 for property owners who do not itemize their income tax deductions. The maximum amount that can be claimed is $1,000 for joint income tax filers ($500 for single filers).