DC’s First-Time Buyer Credit Not Coming Back Anytime Soon

by Shilpi Paul

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For years, first-time buyers in the District enjoyed a $5,000 tax credit when they bought a home in the city. However, the credit lapsed in 2011, and was not included in the budget for the 2012 tax year.

UrbanTurf has been reaching out to Congresswoman Eleanor Holmes Norton’s office periodically since the beginning of the year to determine the possibility of the credit being reinstated.

Late last week, Norton’s staff told UrbanTurf that while the congresswoman still feels that it is important, the staff’s sense is that the climate in Congress and the current state of the District mean that the credit will not likely be reinstated anytime soon.

When the credit was implemented in the 1990s, the city had a greater need for incentives that would encourage residents to put down roots in DC. At the time, people were fleeing the city, giving Norton’s office a strong case to advocate for the credit.

Now, with 1,100 new residents moving to the city every month, the case is not as strong with some feeling that DC doesn’t need the incentive any longer. However, the congresswoman still strongly supports the credit, and is working to get it renewed.

Readers, what do you think? Does DC still need a first-time home buyers credit?

See other articles related to: tax credit, dclofts

This article originally published at http://dc.urbanturf.com/articles/blog/in_dcs_first_time_buyers_tax_credit_coming_back_not_hopefuly/6897

7 Comments

  1. itsme said at 8:55 am on Monday April 8, 2013:

    Greed is really taking hold of DC.. major surplus and growing.. would love to know the real reason why..

  1. Zesty said at 9:34 am on Monday April 8, 2013:

    Not needed. With inventory low and too much competition from buyers; it’s doesn’t make sense to introduce a credit that will only make it harder for first-time home buyers to purchase a home (by introducing more buyers and increases sale prices). The only logical reason for this credit is to inflate home prices.

  1. jag said at 9:47 am on Monday April 8, 2013:

    Of course DC doesn’t need the credit. It’s been gone and no one has missed it.

  1. StringsAttached said at 10:47 am on Monday April 8, 2013:

    I think the credit should be continued for certain neighborhoods in the District that would benefit from the credit. Not all DC neighborhoods have low inventory or have sellers that are beating back offers.

    The DC government seems to work hard to keep low income residents in improving neighborhoods however, I believe offering incentives for higher income earners to move to the “not so pretty” parts of DC would also be beneficial.

  1. Kyle G said at 11:08 am on Monday April 8, 2013:

    If renewed, it should be neighborhood-specific or income-limited.  It should help young or low-income people get into ownership in the expensive metro region.

  1. JP said at 1:11 pm on Monday April 8, 2013:

    I purchased late last year and I remember going to the homebuying seminars and getting told time and time again about the DC Homebuyer Tax Credit which is very helpful. I am a young first time homeowner and I would have like to have had the opportunity to take advantage of the tax credit. However, with the circumstances being what they are (and as a DoD employee) I would be grateful just to be able to make my mortgage payments on time with the looming furlough.

  1. Evelyn Branic said at 3:25 pm on Monday April 8, 2013:

    I think there is a good argument for keeping the tax credit for targeted neighborhoods.  Working class families of modest means deserve the benefit of owning a home in DC.  Employees such as police, firefighter, nurses & teachers should also qualify for the tax credit.

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