Builders Want More Home Buyer Tax Incentives

Some players are looking for something sweeter than the current $8,000 credit.

By SHARE

Looks like home builders are looking to beef up the $8,000 first-time home buyer tax credit that was passed with the stimulus package:

From Dow Jones:

Some of the nation's home builders aim to stretch the deadline - and possibly the amount - of a federal tax credit of up to $8,000 for first-time buyers closing before Dec. 1, according to Jeffrey T. Mezger, KB Home's president and chief executive…

Builders are pointing to success in California, which is offering buyers of new homes an up-to $10,000 credit. The industry aims to expand that first-come, first-serve program beyond the $100 million cap expected to be exhausted soon, but the Golden State's budget crisis could stymie that.

"We are using our California success as an industry as reinforcement at the federal level," said Mezger, head of the nation's fifth-largest builder by annual closings. "Maybe they should go higher than ($)8,000 because it is creating jobs and creating demand."