By Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) -- Senators have struck a deal to extend a popular tax credit for home buyers beyond those buying their first house, Senate Majority Leader Harry Reid's office said Wednesday.
Legislators also have agreed to extend the tax credit through the end of April, according to a Reuters report.
An $8,000 credit for first-time home buyers is set to expire at the end of November. Under a compromise reached by senators, the credit would be expanded to those who have lived in their home for five consecutive years, a Reid spokeswoman said.
The credit for repeat buyers would be $6,500.
The credit reportedly would be available for individuals making up to $125,000 a year and couples earning up to $225,000 per year, up from the current income limits of $75,000 and $150,000, respectively.
Reid wants to attach the tax-credit measure to a bill that would extend unemployment benefits
This is not a done deal yet, but all indications are it will become law! Stay tuned for further updates.
In my opinion, the first tax credit did a good job of stimulating the market for 1st time buyers. This expanded version takes it a step further- ofering the rebate to trade-up buyers, creating 2 transactions, they sekll their present home and buy a new one ( either bigger for a young family or downsize for an older family). It also increases the income level for eligibility.
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