KTRV Fox 12 Tax Credit to Help Idaho Economy

Tax Credit to Help Idaho Economy

Boise, Idaho -- Extending the home buyer's tax credit.

It's one of the moves by the federal government, which will have an affect on Idaho and potentially the state's shrinking economy.

President Obama just signed a new unemployment benefits bill -- one which could improve the housing market.

"This has made home ownership available to a much larger group of qualified buyers," said Marc Lebowitz, Ada County Realtor's Association.

That's because part of the bill also extended and improved the home buyers tax credit.

Lebowitz says nationally, some six million more people will have access to a $6,500 tax credit.

"For the first-time home buyer, the income limit has been lifted from $75,000. It's been raised to $125,000," Lebowitz said.

But current home owners will also qualify, as long as they buy a house after living in their current home for five years or more.

Some are looking for this improvement to help the overall economy.

"I think people in the construction sector would tell you that anything that would convince people to pull more houses out of the inventory of houses is a good thing for construction," said Bob Fick, Idaho Department of Labor.

Tax changes in California could also help Idaho's economy.

The Golden State just increased payroll tax withholdings to an additional 10percent, hoping to overcome a $20 billion deficit.

Lawmakers have done things like that before, which often helps states like Idaho.

"A lot of businesses felt that the responsibility under those two programs in California were onerous and many of them came to Idaho -- buck knives being one of the best examples," said Fick.

"If a person in LA wants to find a better quality of life, and wants to find a place where they're also able to have a job that supports that quality of life, this is going to be a good place for them," said Lebowitz.

But bringing people here comes with it's challenges, and one of the biggest involves employment opportunities.

"We have to continue to work to solve our employment situation. We have to bring more jobs to this valley. And as we bring more jobs to this valley people all over this country will find that this is a good place to live," Lebowitz said.

He says if Californians don't start moving here, many will start buying up more investment properties, since the price is right and interest rates are still affordable.

One thing he says you won't have to worry about are those investments going under, since the federal government has tightened up lending practices.