6/30 Update: Tax Credit
(June 30, 2010) Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law. NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.
Background. Yesterday (June 29th), the House of Representatives passed H.R. 5623 which will extend the homebuyer tax credit closing deadline to September 30th. The bill there awaited consideration in the U.S. Senate. H.R. 5623 is a stand alone bill that will extend the closing deadline for the homebuyer tax credit. The National Association of REALTORS® estimates that nearly 180,000 homeowners will lose the credit if the deadline is not extended. Though the Senate already has legislation (H.R. 4213) before it that would extend the tax credit, that legislation also includes other provisions like the extension of unemployment benefits and the reinstatement of National Flood Insurance Program (NFIP). Unfortunately, the Senate has not had enough votes to move H.R. 4213, and it is hoped that a stand alone bill like H.R. 5623 — which does not include any other provisions besides the tax credit — will have a better chance for passage.
