Tax Credit Extended
If you have read or heard the news today, you know that reports are circulating that the Senate has agreed to extend the tax credit for first-time homebuyers and to offer a reduced credit to qualifying repeat buyers.
The proposal according to the Senate Finance Committee Chairman, Max Baucus, is to extend the current first time homebuyer credit to purchases under contract by April 30, 2010, and must close within 60 days. In addition, the new plan will offer a $6500 credit for homebuyers who have lived in their prior residence for at least five years.
Although this is encouraging news for home buyers and sellers, according to the National Association of REALTORS, (NAR) there is no definitive agreement on how to attach this tax credit to the pending Unemployment Insurance bill, or whether to offer the tax credit agreement on another bill, or whether to bring the agreement to the Senate floor and vote upon it as a separate, stand alone bill. And after Senate action, the tax credit must go to the House of Representatives for action.
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