American Recovery and Reinvestment Act

$15,000 Home Buyer Credit Joins Senate Stimulus Bill 

The Senate on Wednesday passed a home buyer tax credit provision in its version of the financial stimulus bill. The provision will allow a tax credit of 10 percent of the value of a new or existing residence — up to $15,000 — an increase from the current $7,500 tax break for new home purchases. The provision will cost $18.5 billion and brings the total price tag of the bill to over more than $900 billion.