The current tax credit may be claimed on all first-time home buyer (or those who have not purchased a home within three years) on purchases which close by November 30.
In addition to an extension of the deadline, some lawmakers want to see the credit made available to all home buyers who meet set income eligibility standards. There are other lawmakers who want to see the amount of the credit increased from $8,000 to $15,000.
Current income requirements are: first timers buying their primary residence who earn $75,000 or less per year are eligible to receive the full $8,000 credit. Those who earn more are eligible for partial credits.
It is estimated that by the time the deadline for the current credit arrives, over 1.7 million tax payers will have taken advantage of the credit. The NAR (National Association of Realtors) estimates that of this number, over 350,000 of participants would not have purchased their home if the credit had not been available to them.
Supporters of the extension make the point that the housing market is a strong indicator of the overall economy, and that if the housing market can be steered in an ongoing direction of recovery, it may help other areas of the economy follow suit.
The NAR would like to see the credit extended through the end of next year.
|
