All that it needs is the Presidents signature and word from the White House is that he will sign the extension. The new bill extends the current $8000 tax credit for first time home buyers to April 30 and adds a credit for home owners that have been in their homes 5 of the past 8 years. This is unclear what other restrictions it will have.
A new Senate proposal will offer a first time home buyer tax credit extension to homes under contract by April 30, 2010. The former deadline was November 30, 2009. The home buyer tax credit will also be offered to people who have lived in the same home for five years, according to the proposal, which at time of writing hasn’t passed yet, but has bipartisan support.
An agreement reached yesterday by the Democrats would let homeowners who buy a new home qualify for a $6,500 credit if they have lived in their prior residence for five years, according to Regan Lachapelle, an aide to Senate Majority Leader Harry Reid.
“The compromise we have now would expand the credit beyond first-time homebuyers,” Lachapelle said. Lawmakers expect to consider the measure as part of a bill to extend unemployment benefits, she said. That measure has been held up by a disagreement with Republicans over other proposed amendments.
The focus of the Senate and the House is to keep the homes sales moving as our economy fights to recover. We have seen the worst drop in home sales since the Great Depression. Hopefully the new plan which extends the First Time Home Buyers Credit that expires December 1st to April 30, 2010 will continue to stimulate fall and spring home sales and end right when the big summer sales take over.
The income restrictions have changed to single wage earners up to $125,000 and joint earners up to $250,000. The old restrictions were $75000 for singles and $150,00 for two.
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