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While 84,559 homebuyers in Illinois put in a claim for the Federal Home Buyer Tax Credit, only 25,504 sales were actually boosted by the
 

Summary: While 84,559 homebuyers in Illinois put in a claim for the Federal Home
Buyer Tax Credit, only 25,504 sales were actually boosted by the
incentive1
Chenxi Yu and Laura Atuesta
According to the September 2nd
report by the Government Accountability Office (GAO), 84,559 home
sales in the State of Illinois took advantage of the Recovery Act1
and Assistance Act23
. The number of
claims for the tax refund amount to over 50% of the total home sales. While there is no doubt that the
credit did a lot to accelerate sales, it is not clear just how many of those sales might have happened
anyway consumers who were in the market took advantage of the credit.
Chenxi Yu and Laura Atuesta from the Regional Economics Application Laboratory (REAL) at the
University of Illinois have estimated that the real boost from the Home Buyer Tax Credit (HBTC) in Illinois
was around 1,594 sales per month, of approximately 25,504 sales during the 16-month time span of the
incentive. The total number of sales during the same time period was 154,657. Thus, about 16.5% of the
sales may be attributed to the effect of the tax incentive.
"Our estimates suggest that only about 16.5% of the sales in Illinois could be attributed to the Home
Buyer Tax Credit rather than the 50% claimed by the GAO study," remarked Chenxi Yu from REAL, "while
the remaining sales for which the credit was claimed would probably have occurred anyway. In all

  

Source: Anastasio, Thomas J. - Beckman Institute for Advanced Science and Technology & Department of Molecular and Integrative Physiology, University of Illinois at Urbana-Champaign

 

Collections: Biology and Medicine