Housing Bill's Tax Credit Draws Criticism

The Wall Street Journal ^ | 2008-07-08 | Arden Dale

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U.S. lawmakers are touting a home-buyer tax credit in a high-profile housing bill before Congress, but critics say it may do little to help consumers amid the mortgage crisis.

The tax credit would allow qualified home buyers to subtract the credit amount from their income taxes when they buy a home, but it requires them to pay it back over 15 years. It resembles an interest-free loan that must be repaid to the government.

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So, tell me...there are already deductions for mortgage interest paid and property taxes (if you itemize), plus there's a mortgage interest credit for "low-income" buyers, and even an obscure credit for "first-time" buyers in the District of Columbia that has similar phase-out limits to this new tax credit.

So, tell me, will this new tax credit be refundable? (Given that it's an interest-free loan of sorts, I'm willing to bet that it will be.)