New Direction for Energy Independence, National Security, and Consumer Protection Act

The New Direction for Energy Independence, National Security, and Consumer Protection Act or "Housing and Economic Recovery Act of 2008" (H.R. 3221) was a bill in the 110th Congress "to provide needed housing reform and for other purposes." (Official title.)

Current status


Bill summary

 * Appropriates $4 billion for assistance to states and local governments for the redevelopment of abandoned and foreclosed properties (Sec. 301).


 * Allows a tax credit of up to $7,000 for the purchase of a qualified principal residence during the taxable year (Sec. 603).


 * Requires the Secretary of Housing and Urban Development and the Commissioner of the Federal Housing Administration (FHA) to consult with foreclosure prevention organizations and develop a plan to improve the FHA's loss mitigation process (Sec. 125).


 * Adds people who have a reduction in income due to divorce or death, or who have an increase in expenses due to medical expenses, divorce, unexpected property damages not covered by insurance, or a large property tax increase to the eligibility list for homeownership counseling (Sec. 127).


 * Allows a real property tax deduction on the amount of state and local real property taxes paid during the taxable year of up to $500 for individuals and $1,000 for joint returns (Sec. 604).


 * Temporarily increases the cap on qualified mortgage bond proceeds that can be used to assist individuals in refinancing sub-prime home loans to $10 billion in 2008 (Sec. 602).


 * Extends expiring tax credits until Jan 1, 2010 for the establishment of certain facilities that produce power by using wind energy, biomass energy, geothermal energy, solar energy, small irrigation power, landfill gas, trash combustion, refined coal production, and hydropower, while also expanding these tax credits so as to apply to certain new marine and hydrokinetic facilities (Sec. 1011).


 * Extends certain tax credits for the development of solar energy until January 1, 2017 and for the development of fuel cell energy until December 31, 2017 (Sec. 1012).


 * Extends the expiration date of the "residential energy efficient property" credit (which provides a tax credit of 30 percent of expenditures on certain types of solar energy) from December 31, 2008 until December 31, 2009, and removes the $2,000 credit limit on solar electric energy (Sec. 1013).


 * Extends the authority to issue "clean renewable energy bonds" until December 31, 2009, and increases the limitation on the cumulative value of the bonds from $800 million to $1.2 billion (Sec. 1014).


 * Extends the expiration date of the "new energy efficient home" credit (which applies to certain new homes that meet specific energy conservation criteria) from December 31, 2008 to December 31, 2010 (Sec. 1022).


 * Extends the "energy efficient commercial buildings" deduction until December 31, 2009, and increases the maximum deduction from $1.80 to $2.25 per square foot (Sec. 1023).


 * Modifies energy efficient appliance credit levels and extends certain credits through the 2010 calendar year (Sec. 1024).

NOTE: This bill was passed by the House as an energy related bill. The Senate substituted the text of this bill to make it a foreclosure related bill with some energy tax provisions.

Key votes

 * Vote to pass a bill that changes mortgage and property tax laws and extends energy tax credits.

Supporters

 * Affordable Housing Tax Credit Coalition
 * Builders League of South Jersey
 * Fannie Mae
 * National Association of Home Builders
 * National Association of Realtors
 * National Neighborworks Association
 * Securities Industry and Financial Markets Association

Opponents

 * FreedomWorks

Articles and resources

 * Inman.com's article Vote on big housing bill could come today 23 Jul 2008.
 * CQ Politics' article Housing Bill Headed to House Floor 22 Jul 2008.
 * The Hill's article Top real estate markets drive fight between Realtors, banks 21 May 2008.
 * Building Rural Communities' article Landmark Housing Bill Signed into Law;and Other Information on the Foreclosure/Housing Crisis 30 Jul 2008.
 * Forbes' article Bush administration threatens veto of 4 bln usd federal home buying program 26 Feb 2008.
 * Politico's article Banking industry fights for change 25 Feb 2008.