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

• April 8, 2013

by Shilpi Paul

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?

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