Among its many provisions is a $7,500 tax credit for first time homebuyers. Technically, the stimulus bill is actually changing the terms of the $7,500 tax credit that Congress passed last summer as a part of the Housing Recovery Act. That legislation required that the tax credit be repaid over 15 years, making it more a no-interest loan. The bill now under consideration would make that tax credit a true tax credit that does not need to be paid back.

Many in the housing industry believe this credit could do a lot to jump-start the bleak housing market.

Who Qualifies

To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit phases out as income rises above $75,000 for single taxpayers, and $150,000 for couples, and disappears entirely at $95,000 and $170,000 respectively.

Applying for the credit is easy, just claim it on your tax return. No other forms or papers have to be filled out.

The housing industry has been pushing for this idea for many months, arguing that first-time homebuyers are the key to boosting home sales. It is believed that first-time homebuyers who purchase from existing homeowners free up those sellers to trade up to bigger, more expensive houses.

Buyers Beware

Some tax experts are giving this tax credit to homebuyers a mediocre grade at best, arguing that the credit is poorly targeted because it goes to every first-time homebuyer, not just the ones who wouldn't buy without it, simply providing a windfall for many people who would have purchased a home anyway. In the end, the credit will do nothing to address the issue holding most home buyers back - the suspicion that prices are going to keep falling.

The industry would like to make the tax credit stronger by making it available to ALL homebuyers, not just first-timers, and it's pushing to have the credit last through the end of the year, at a minimum.

Stay tuned to this newsletter for more on the Stimulus Bill and what it may (or may not) mean to housing.

What Do Opponents Want in the Stimulus Plan?

For starters, Republicans want to see mortgage rates pushed to 4 percent and cut the lowest tax rates.

Under the Republican backed bill, any "credit-worthy borrower" would be able to get a government-backed 4 percent loan. Democrats say they have not ruled out backing such a plan, but of course, say they want to see more details.

It is estimated that under this plan, the average family would see its monthly mortgage payment drop by roughly $466 a month, or $5,600 a year. Over the life of a 30-year loan, that's a savings of around $167,700.

The second part of the Republican revised idea for the stimulus plan would be to cut income tax rates. Currently, according to GOP data, married couples pay a 10 percent tax on income up to $16,700. Republicans would cut that rate to 5 percent, meaning a savings of about $500 per couple.

They would also reduce by 5 percentage points, the 15 percent rate now levied on couples earning between $16,700 and $67,900, saving working couples another $1,100. Single filers would get similar reductions. Either way, everyone who works and pays income tax would see an immediate increase in pay.

Republicans fear that most of the infrastructure projects it includes won't impact the economy fast enough to do much good, and in fact, will only increase permanent spending by about $240 billion, an increase that would lock in bigger and bigger deficits every year.

President Obama has signaled his willingness to compromise. His chief spokesman said the president hoped to strengthen the bill as it heads towards a Senate vote in the days and weeks ahead.

Housing: What the Bill Includes

$6 billion to weatherize moderate income homes, making them more energy efficient.

$4 billion for homeowners to take up to 30% of the cost of conservation measures as a tax credit, up to $1,500 per person.

$300 million for consumers to replace old appliances.

$500 million to help rural families secure mortgages.

For those living in public housing:
$16 billion in energy retrofits and improvements.

1/2 of All Americans Want to Move?

(From Pew Research)

On the surface, this sounds like just what the economy needs to get rolling again.Everyone just move!

It turns out that Pew Research did a survey on where people would like to live, and their survey showed that nearly half of all Americans would like to move somewhere else.

So who likes what city?

Las Vegas: Men seem to like Vegas more than women.

New York / LA: 57% of urban dwellers younger than 30 say these are the cities where they want to live.

Boston: Seems this is where mostly the affluent would rather live.

Denver / San Diego / Seattle: This is where youth seem to want to be. But one must have for these relocating, Mickie D's or Starbucks. They say "you have to have the golden arches nearby."

Orlando / Phoenix / San Antonio: Republicans

San Francisco: Half of those who identified themselves as "liberal" say they would rather live here.

Other Interesting Finds:

•The perfect community type?: 30% say they would most like to live in a small town, 25% in a suburb, 23% in a city and 21% in a rural area.

•By a ratio of more than three-to-one, Americans prefer living where the pace of life is slow, not fast. A similarly lopsided majority prefer a place where neighbors know each other well to one where neighbors don't generally know each other's business. •By about two-to-one, they prefer to live in a hot-weather place over a cold-weather place.

•When it comes to community involvement, there is no difference among those who live in cities, suburbs, small towns or rural areas. About half of the residents in each place say they are involved, and half say they aren't.

The top favored cities and the least favorite matched the nations migration habits. As Americans favor the South and West.

10 most popular big cities — Denver, San Diego, Seattle, San Francisco, Phoenix, Portland and Sacramento — are in the West, and the other three — Orlando, Tampa and San Antonio — are in the South.