Senate Approves Extension of Federal Tax Credit for Home Buyers
Late Wednesday afternoon, the U.S. Senate approved a bill which extends and expands the federal tax credit for home buyers. The bills calls for the first-time home buyer $8,000 tax credit to be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. Existing homeowners will be eligible to receive a credit of up to $6,500 if they've lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.
Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns and don't have to repay the credit provided the home remains their primary residence for 36 months after purchase. Repayment is waived for active duty military personnel who move prior to the 36-month requirement if the move is due to a military order.
The bill now will go to the House, where action may be taken as early as today and possibly on President Obama's desk by Friday.