UPDATE 1-Senate votes to extend US home tax credit deadline

Wed Jun 16, 2010 3:40pm EDT

(Adds details)

WASHINGTON, June 16 (Reuters) - The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.

The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.

The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6,500 credit.

Reid offered the measure as an amendment to a bill that would extend some popular business tax breaks and extend unemployment insurance benefits for jobless workers.

The proposal would not have a significant impact on future home sales as the extension would be only for home buyers who already had a contract in hand by April 30.

The popularity of the tax credit has caused some anxiety because settlement offices are inundated with buyers trying to close on transactions by the end of this month to get the tax break. (Reporting by Donna Smith; Editing by John O'Callaghan)

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Comments (7)
acman2k5 wrote:
Let’s help the housing market Mr US Government so all the cheap houses and land that was bought “dirt cheap” by companies using American Taxpayers Monies to resale to people who have a job? Only in American can a country do as bad as ours and have politics make it look like a good thing for all.

Jun 16, 2010 4:34pm EDT  --  Report as abuse
Montanajeff wrote:
Good job!!! We had so many 1st time homebuyers trying to get loans and new homes closed, but with all of the added regulation, it just didn’t look good for many. Almost like a carrot out there that you could never eat. Since this did not increase the cost of the plan already in place, I like it. Sometimes government can be a good thing.

Jun 16, 2010 5:03pm EDT  --  Report as abuse
jimed wrote:
Good deal, but there should be an amendment to deny the ‘hate big government teabaggers’ access to the program.

Jun 16, 2010 5:06pm EDT  --  Report as abuse
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