Last week, elected officials in Washington, D.C., proposed a new $15,000 tax credit to encourage people to start buying homes and, in turn, jump start the national housing market.

It was a nice incentive, which would have provided all homebuyers (not just first timers) with up to $15,000 (or 10 percent of the value of new or existing residences) to put toward their real estate purchases.

Unfortunately, the money-saving measure was today cut from President Barack Obama’s $838 billion economic stimulus package, which had recently received bipartisan support from Senate members. The House of Representatives trimmed the bill to $789 billion and left the $15,000 tax credit on the cutting room floor.

The good news is that there was a compromise — the $7,500 tax credit was bumped up to $8,000. This program provides first-time homebuyers with monetary incentive to purchase foreclosures. In addition, under the terms of the new language in the revised bill, the $8,000 does not need to be repaid (previously it had to be paid back at zero interest within 15 years).

It’s expected that a final vote on the revised $789 billion economic stimulus packaged could come as early as tomorrow (Friday). If it is approved it would then head to the desk of President Obama where it would more than likely be officially signed into law.

Stay tuned.