Thursday, July 01, 2010

Congress Extends Tax Credit

The U.S. Congress on Wednesday approved a bill extending the closing deadline for homebuyers trying to take advantage of a popular tax credit.

Homebuyers with contracts signed by April 30 who failed to go to closing by the June 30 deadline will now have until September 30 to complete their purchases. The House of Representatives on Tuesday approved the bill and it now goes to President Barack Obama for his signature.

The $8,000 tax credit for first time homebuyers and $6,500 credit for others purchasing a new primary residence was a highly popular temporary measure by the Obama administration to jump start home sales during the economic recession.

In order to qualify for the credit a homebuyer must still have signed a binding contract by April 30, 2010.  But now the closing deadline has been extended until September 30th.  This will assist those persons who have not been able to close because of financing or other issues.