The estimate comes from the federal General Accountability Office (GAO) who reviewed Internal Revenue Service (IRS) data of those claiming the credit.
Missouri's 5.1 claims per thousand residents ranks 20th nationally. Among adjacent states though, only Kansas, Kentucky and Illinois ranked lower.
The estimate includes those eligible for the initial credit in 2008, that was essentially a $7,500 loan to be repaid over 15 years. In addition, the total includes those claiming the $8,000 credit enacted by the federal stimulus in early 2009 (as of Aug. 2009).
That stimulus credit is slated to expire Nov. 30, but Congress is currently considering a reauthorization. That reauthorization, in fact, is holding up passage of a bill to extend unemployment insurance benefits to millions.
CQ reported Wed. that a bipartisan coalition of senators agreed to amendments that would expand the first-time hombuyer tax credit. The agreement would reportedly decrease the credit from $8,000 to $7,200 and also increase those eligible to apply to current home owners.
According to GAO, the current tax credit cost the federal government $7.1 billion in 2008 and $2.9 billion between January and August of 2009. Cost estimates are not yet available for the likely expansion.
The report also found that 59 percent of those claiming the credit had annual gross adjusted incomes under $50,000, supporting the notion that lower income taxpayers would realize the greatest benefit from the credit.
Related Links:
GAO: First-Time Homebuyer Tax Credit Testimony
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