Senate Democrats Agree to Extend Home Buyer Tax Credit
The Chairman of the Senate Banking Committee, Chris Dodd (Democrat-Conn.), speaking on behalf of the
committee, has stated that Democrats in the Senate have agreed to an extension of the first-time buyer tax credit.
The latest approved version now includes home sales deals which have entered into contract, but not yet closed, with the new deadline being April 30, 2010. Contracts that are signed by the deadline will have a sixty-day period to close. The latest version also includes what is known as "step-up" buyers who have resided in their homes for at least 5 years.
The dollar amount of the credit was decreased by just under 10% to a limit of $7,290. Income eligibility requirements remain unchanged for first time home buyers. The new addition of "Step-up" buyers will see a jump to $125,000 for singles and $250,000 for couples.