Calling a Rebate an Incentive Doesn't Make It One

The new $8,000 tax credit provision in the "stimulus" plan is called an "incentive" by most, yet it isn't. It clearly is a rebate. It is money that someone gets backs after the purchase (and after paying for it first through the proceeds of their mortgage, down payment, and closing costs) by filling out and filing their required and necessary forms (1040 tax return) and meeting the eligibility requirements.

It is a nice bonus for those who already decided to purchase and could meet the provisions of the package.

I have not seen or heard of anyone (although they could be out there) who were not ready to purchase a home who were so persuaded by the $8,000 future rebate that they went ahead and made a decision that they hadn't really planned.

In most cases, a rebate only helps us feel good about a decision we were going to make anyway.

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