Tax Credit Extension

The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date.  The credit would be available until April 30, 2010.  Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home.  The credit currently applies only to first time home buyer.

The Senate vote was 98 to 0

Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years.  The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.

Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively.  Above those limits there are diminishing credits available.