From the Star Ledger:
A state association of real estate agents is backing legislation that would create a New Jersey tax credit for home buyers, according to a release.
The bill, which has yet to make it out of committee, would establish a tax credit much like the federal incentive that is set to expire after the first half of this year, the New Jersey Association of Realtors said.
Real estate brokers, home builders and appraisers have been touting the national first-time home buyer’s tax credit as an integral part to the recent stabilization in home prices.
Some comments on the credit: (Courtesy of Calculated Risk):
It’s terrible policy,” says Mark Calabria of the libertarian Cato Institute.
“It’s awful policy,” says Andrew Jakabovics, associate director for housing and economics at the liberal Center for American Progress. “It’s incredibly expensive. It’s not well targeted.”
“We paid $8,000 to at least 1.5 million people to do something they were going to do anyway,” Jakabovics says.
“A heck of a lot of people would have bought the house anyway,” says Ted Gayer, an economist at the Brookings Institution.
The tax break, due to expire at the end of November, is on track to cost $15 billion, twice what Congress had planned. In other words, it will cost $43,000 for every new homebuyer who would not have bought a house without the tax break.