New tax break could impact small home builders most

TRD MIAMI /
Nov.November 09, 2009 10:16 AM

Home builders stand to gain hundreds of millions of dollars in refunds on taxes from up to five years ago as a result of the new tax break for businesses that President Barack Obama signed into law Friday. The tax break, part of the package that included an extension of the first-time homebuyer tax credit and unemployment benefits, could grant big builders like Michigan-based Pulte Homes up to $450 million in tax refunds. Miami-based Lennar Corp. expects to receive between $200 million and $300 million. While such companies lobbied extensively for the refunds, many of those large builders have, in the meantime, built up large cash reserves by selling assets and hoarding cash in the immediate wake of the housing crash. Now, the top 10 builders have an average of $1.2 billion cash, up from the $616 million they had in 2007, according to JPMorgan. The tax break is like “giving them free money” at this point, said Rob Stevenson, a real estate analyst with investment bank Fox-Pitt Kelton. The larger impact of the law will be felt amongst smaller, private builders who might otherwise have shuttered, said Bill Killmer, vice president of advocacy at the National Association of Home Builders.

[WSJ]


Related Articles

arrow_forward_ios
A rendering of Via Ventura and Stuart Miller (Credit: Lennar)

Lennar sells off part of its Via Ventura community

Arden home community and Stuart Miller

Lennar picks up 50 lots in western Palm Beach County

Brent Baker and a rendering of Oak Tree Golf Course

Pulte pays $31M for Oakland Park golf course

Lennar's Stuart Miller and a rendering of a Sierra Ranch home

Lennar closes on 89-acre Davie site for single-family home community

Daily Digest Miami

Here are the homes of Miami Heat’s elite, developer Steve Witkoff revealed as buyer of Sunset Islands home: Daily digest

Lennar at Sorrento at Venetian Parc clubhouse, Lennar Vice Chairman Stuart Miller

HOA buys clubhouse in southwest Miami-Dade from Lennar

From left: Alejandro Arias, Keren Marti, Avra Jain, Carolina Herrera, Luis Gonzalez, and Melissa Rose (Credit: Brett Hufziger Photography, Google Maps)

New frontier? Developers look to Hialeah

Stuart Miller and Southwest 152nd Avenue in Homestead

Lennar picks up land assemblage in Homestead

arrow_forward_ios
Loading...