Senate Moves to Expand and Extend Home Buyers Tax Credit

Reacting to the economic success of its first-time home buyer's tax credit, the Senate is moving to expand and extend the tax credit into 2010. That is exceptionally good news for the consumer given the boost that these tax credits give to the overall economy at the level of the small business. A nudge to your representative would still be a good idea to ensure that this happens as announced.

According to RIS Media, the following information has been released:

The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn.

While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.

Read more: http://rismedia.com/2009-10-29/breaking-news-senate-plans-to-extend-and-expand-tax-credit/#ixzz0VQfaneNA