Senate approves extension to qualify for homebuyer tax credit
By a 60-37 vote, the Senate on Wednesday approved a measure extending the closing deadline for qualifying for the homebuyer tax credit. The proposal is expected to be added to a slimmed-down tax extenders bill that Senate Democratic leaders are expected to unveil Wednesday.
Congress originally passed an $8,000 tax credit for first-time homebuyers as part of the stimulus bill President Barack Obama signed into law in February of 2009 (In fact, the original tax credit was in 2007 for $7,500, but had to be paid back). Lawmakers extended and expanded the measure last November to include a $6,500 tax credit for buyers who have already owned a home. Both of these measures expired at the end of April for buyers that enter into a contract to purchase a home. Wednesday's measure only extends the cut off date for closing on the property.