NAR: Third Extension of Tax Credit Unlikely

With the extension of the $8,000 first-time homebuyers tax credit and the addition of a smaller $6,500 credit for move-up buyers, the housing sector has gotten a second chance, but a third is unlikely. There will not be a third extension, according to the National Association of Realtors' director of tax policy. Lawmakers "made us promise practically in blood that we would not come back" for another extension, Lindo Goold said at NAR's annual convention in San Diego. Ms. Goold also spoke of "the high drama" involved in persuading Congress to increase the income limits involved with the credits. "You have no idea how nip and tuck it was," she told a convention session. The NAR's chief tax lobbyist also pleaded with realty agents not to allow their clients to "dream up schemes" to get around the rules regarding the credits, warning that the industry's credibility is on the line. Ms. Goold said the group enjoyed unprecedented success and "extraordinary victories" on Capital Hill this year. But she also advised that 2009 probably will be the last year the Realtor lobby will be able to be on the offensive. "We won't have that luxury too much longer," Ms. Goold said, explaining that with the government's coffers all but empty, the highly prized mortgage interest deduction, the capital gains write off and a favorable estate tax all may be on the table next year.