Builders Urge Quick Passage of Tax Credit

The National Association of Home Builders is urging the Senate to quickly pass a temporary $10,000 tax credit for homebuyers to encourage sales and reduce the huge inventory of unsold homes overhanging the market. "We are encouraging policy makers to take a hard look at stimulating the housing sector" to prevent the economy from spiraling into recession, NAHB chief executive Jerry Howard said. Mr. Howard told reporters that the homebuilders support several provisions in a Senate foreclosure prevention bill that Republican senators blocked because of a controversial provision that allows bankruptcy judges to restructure mortgages. The NAHB CEO said the Senate Democrats should strip the bankruptcy provision from the bill and consider an amendment by Sens. Johnny Isakson, R-Ga., and Debbie Stabenow, D-Mich., to provide a homebuyer tax credit. Senate Majority Leader Harry Reid, D-Nev., has indicated that he would let Sen. Isakson offer his amendment when the foreclosure bill comes up again for a vote and that he might support a $4,000 tax credit.