For all the discussion of extending the new home buyer federal tax credit, it seems like no one remembered to check in with the administration. The credit is very popular among congress members, several of whom have proposed various kinds of extensions.
But Shaun Donovan, the Secretary of Housing and Urban Development, told a Senate Committee today that the administration needs to review the data and do some cost-benefit analysis before it decides whether or not to back an extension.
This is from the Wall Street Journal’s Developments blog:
Donovan told a Senate hearing on Tuesday that there was “clear evidence” that the tax credit had benefited the housing market. But he said that the “real issue” in considering an extension was whether an extension was worth the cost to the government in lost tax revenue.
The actual cost of the credit won’t be known “until Americans have filed their tax returns,” he said. “And so, we feel it’s very important within the administration that we gather as much data as we possible can in advance of that before we make a final decision.”