Senate moves home buyer tax credit froward crucial step, could pass tomorrow

By: Eric Wolff —  November 2nd, 2009

Looks like Congress will be extending that homebuyer tax credit afterall. First time homebuyers, known to the IRS as people who haven’t owned a home in the last three years, have been frantically trying to get into contract on a house in time to get an $8,000 federal tax credit due to expire on Nov. 30. But some of them have had such a hard time outbidding cash buyers that they despaired of making the deadline.

Well, they’re in luck. The Senate just passed a cloture motion to end debate on a bill, 85-2. that will extend the tax credit to April 30, 2010. The bill should find it’s way through floor votes in both Senate and the House by the end of tomorrow, if Senate Majority Leader Harry Reid has his way.

But the bill will not just be extended, it will also be expanded. From Bloomberg:

Homebuyers who have lived in their prior residences for at least five years could receive a credit of $6,500 under the plan. Couples earning as much as much as $225,000 and individuals earning up to $125,000 would also qualify. That’s up from the current $75,000 limit for individuals and $150,000 for couples.

Also, anyone taking the credit from a home purchased in 2010 would be able to take the credit in 2009.

So, to recap: Homebuyer tax credit takes a major step toward extension and expansion. No doubt there’s a great rhyming headline there somewhere.

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14 Responses to “Senate moves home buyer tax credit froward crucial step, could pass tomorrow”

  1. rookshana says:

    Lets hope the bill is passed tomorrow as this is important for the economy.Please no more delays, please extend the tax credit

  2. This is such a big deal in the Real Estate industry. Many of us saw the showings dropping this weekend, as buyers felt that they would not be able to get the tax credit. I am sure this weekend, the showings will be up if this is passed. It is huge for the economy! Exisiting home owners are thrilled that they are going to be included in this.

  3. ckvdigory says:

    woo hoo!

  4. [...] in favor of sending the homebuyer tax credit extension one step closer to a final vote. In what Eric Wolff of the NC Times referred to as “a cloture motion” that serves to end the debate on a bill, several reports indicate that lawmakers could decide [...]

  5. rosemarie corrao says:

    we are wating to see if the first time home buyer is ext because the bank wells fargo has given us 6 closin dates but the last one is dec 7we need the credit to repair the home. the home is bank owned how the other bank want to charge us 100.oo a day if we dont close. we are giving our son money to buy the home, therefoe the bank is charging us 2000.00 if we close on dec 7 there are alot of empty homes in fla i hope and pray it wii be extended thanks rosemarie

  6. Pat Shaffer says:

    Thank goodness! I am a lender and have so many buyers looking for property. I am so thankful for them. This is a very positive action for the government to take in order to keep the housing market stimulated.

  7. [...] voted 85-2 in favor of sending the homebuyer tax credit extension one step closer to a final vote. Eric Wolff of the NC Times referred to the vote as “a cloture motion” that serves to end the debate on a bill. Several reports indicate that lawmakers could decide [...]

  8. Rebekah says:

    This is so perfect, I am one of those people who have been tirelessly looking and still have not been able to find a home to purchase. This extension will releive the stress that I and maybe so many other people have been going through trying to meet the deadline to qualify for the home tax credit.

  9. [...] voted 85-2 in favor of sending the homebuyer tax credit extension one step closer to a final vote. Eric Wolff of the NC Times referred to the vote as “a cloture motion” that serves to end the debate on a bill. Several reports indicate that lawmakers could decide [...]

  10. [...] voted 85-2 in favor of sending the homebuyer tax credit extension one step closer to a final vote. Eric Wolff of the NC Times referred to the vote as “a cloture motion” that serves to end the debate on a bill. Several reports indicate that lawmakers could decide [...]

  11. [...] voted 85-2 in favor of sending the homebuyer tax credit extension one step closer to a final vote. Eric Wolff of the NC Times referred to the vote as “a cloture motion” that serves to end the debate on a bill. Several reports indicate that lawmakers could decide [...]

  12. S.White says:

    Hi
    Can anyone tell me how the tax credit will work for ” $6,500.00 tax credit” I sure could use it,both my husband And I lost our jobs this year. Any infor. would be most appreciated
    Thank you
    S.White

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