The Senate just moved the home buyer tax credit a step closer to an extension (and expansion), according to a news report today from CNBC.
Enactment of the extension is still quite a ways off, but the Senate has reportedly reached a compromise on what the tax credit provision would look like going forward.
The first-time buyer credit of up to $8,000 (or 10% of the purchase price, whichever is less) would be extended until April 30, 2010.
The program is also slated for expansion. If passed it would provide a benefit to people who have owned and lived in a primary residence for five consecutive years out of the past eight. These buyers would have a $6,500 tax credit.
A lot of political maneuvering must still occur before this is a done deal. Senate leaders want to attach the tax credit provision to a bill that would extend unemployment benefits.
If the Senate does act favorably, the House must take action. So stay tuned. We will keep you updated as this moves its way through Congress.
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