The Senate voted yesterday to authorize an extension and expansion of the first-time homebuyers' tax credit. The credit authorized $8,000 in fullly refundable tax credit for couples earning under $150,000 per year who closed on their first new home purchases by November 30. The extension of the credit would now run through June 30, 2010 for houses under contracy by April 30, 2010. It will continue to provide a $8,000 fully-refundable tax credit for first-time homebuyers, but the income limits have been raised to $225,000 per couple or $125,000 per individual. The credit would be expanded to provide $6,500 to existing homeowners seeking to upgrade to a new home as their primary residence who have lived in their current home for at least five out of the previous eight years. The credit is available for homes costing up to $800,000. The provision is part of the larger unemployment bill, which is expected to be taken up and passed by the House of Representatives promptly.
WP: Senate Votes to rewnew tax credit for first-time home buyers