Realtors Support State Homebuyer Tax Credit

EDISON — Responding to the Senate Budget and Appropriations Committee hearing on legislation, S-692/A-1678, establishing a New Jersey Homebuyer Tax Credit Program under the New Jersey gross income tax for home purchases during calendar year 2010, New Jersey Association of REALTORS (NJAR) Chief Executive Officer Jarrod C. Grasso, issued the following statement:
“As we have seen on the national level, our economy rises and falls with the real estate industry. The National Association of REALTORS (NAR) found that the real estate industry accounts for more than 20 percent of New Jersey’s gross state product. That is why it is so vital to take steps to encourage the stabilization and growth of the Garden State’s housing market.
The establishment of the New Jersey Homebuyer Tax Credit Program would open the door to homeownership for many families and boost our struggling economy.
“When a home is sold in New Jersey, income generated from real estate related industries and additional expenditures such as furniture and appliances totals nearly $40,000, as reported by the National Association of REALTORS. Those additional expenditures equate to higher revenues for the state, including increased sales and income tax collections.
Furthermore, when a home is sold in New Jersey more people are put to work. While NJAR recognizes the financial constraints facing our state and lack of available funding sources, we truly believe enacting the New Jersey Homebuyer Tax credit program will more than pay for itself.
“On the national level, the temporary program establishing an $8,000 first-time home buyers and $6,500 current homeowners’ tax credit has been very successful. The federal tax credit program has been a huge driver in getting prospective buyers off the fence and into a home, which helps decrease home inventory levels and stabilizes home prices.
NJAR and its approximately 50,000 members are hopeful the New Jersey Legislature will continue the work of our lawmakers on Capitol Hill and take steps to enact a similar program at the state level.”
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