Tax credit extension?

First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled last week makes it into law.

The closing deadline could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-NV., Sen. Johnny Isakson, R-GA., and Sen. Chris Dodd, D-CT. The senators said they want to make sure banks have time to process the transactions--especially short sales.

It remains to be seen, however, whether the amendment will go anywhere. Its part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest.

Source: CNNMoney.com, Tami Luhby, (06/10/2010)