ATLANTA (March 26, 2009) – Sen. Chip Pearson (R-Dawsonville) was successful today in his joint effort with Rep. Ron Stephens (R-Savannah) to bring relief to Georgia’s housing market. Homebuyers will receive a one-time, $3,600 home buying tax credit under House Bill 261, which received an overwhelming vote of support in the Senate.
“Fixing housing is the first step to fixing the economy. A stimulus in the housing market will have long-reaching effects across every community in Georgia. The local hardware store, moving company, paint store, service business and others are all affected by housing, and this legislation has them in mind,” said Pearson. “The tax credit will be available for only six months, incentivizing homebuyers to act now. This represents a true stimulus.”
The Home Purchase Income Tax Credit legislation provides homebuyers with a tax credit of 1.2 percent of the purchase price or $3,600 – whichever is less – with the purchase of a single-family home within six months of the bill being signed into law.
Passage of this tax credit represents months of work by Sen. Pearson, who in his role as chairman of the Senate Economic Development Committee led a joint study with the House to examine and develop solutions to Georgia’s housing downturn. Since December, the committee has heard from a wide range of industry experts who all agree that the economic implications could be staggering unless something is done to stabilize Georgia’s housing industry.
In the past year, Metro Atlanta has seen a 20 percent decline in home values, 13 percent statewide. Sen. Pearson noted that this is the first time since World War II that a housing crisis has led the nation into a recession, and there has never been a time since WWII when housing has not led the nation to economic recovery.
The Georgia Association of Realtors and the Georgia Home Builders Association have heralded the bill as a first step to encouraging home sales by getting prospective buyers back into the housing market.
The bill carries an amendment that was attached before the final vote in the Senate, which allows taxpayers to contribute money from their tax returns to educate and alleviate Multiple Sclerosis. Once the House agrees to the amendment, the bill will go to the governor’s desk for his signature.
For more information on the Georgia State Senate or to view HB 261, please visit www.senate.ga.gov.
Sen. Chip Pearson serves as chairman of the Economic Development Committee. He represents the 51st Senate District which includes Dawson, Fannin, Gilmer, Lumpkin, Pickens, and Union counties and portions of Forsyth and White counties. He may be reached at 404.656.9921 or via e-mail at chip.pearson@senate.ga.gov.
PRESS RELEASE
For Immediate Release:
March 26, 2009
For Information Contact:
Raegan Weber, Director
Kallarin Richards, Senior Communications Specialist
kallarin.richards@senate.ga.gov
404.656.0028