Hovnanian to get tax benefit in 1Q, 2Q of 2010

Homebuilder Hovnanian to get tax benefit and gain in first half of fiscal 2010

• On 12:25 pm EST, Tuesday November 10, 2009

RED BANK, N.J. (AP) -- Homebuilder Hovnanian Enterprises Inc. said Tuesday a change in tax law would now allow it to spread its 2009 operating loss over five previously profitable years and give it a tax benefit and gain in the first half of fiscal 2010.

The changes will also result in a tax benefit in the first quarter and a cash refund of $250 million to $275 million in the second quarter of fiscal 2010.

Hovnanian is based in Red Bank, N.J. Its shares fell 9 cents, or 2.2 percent, to $4.10 in midday trading.