Homebuyer Tax Credit Extended

The Senate added an extension to the Homebuyer Tax credit to the jobless bill that was just approved Thursday by a vote of 60-37.  This bill would give buyers an additional 3 months, or until Sept. 30, to complete their purchases and qualify for tax credits of up to $8,000.

Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline. It is estimated that about 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline. 

The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.