Extension of Homebuyer Tax Credit Closing Deadline Has New Life
Well. The Tax Extenders Bill, which also contains legislation to extend unemployment benefits for out of work Americans, has been repeatedly voted down by Senators who refuse to add more debt to the budget deficit, and now it appears the bill will not be revisited until after the 4th of July recess!
BREAKING NEWS
The House just backed a measure to extend the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.
From House Rep. Frank Kravotil's site:
Today, the House of Representatives passed an extension of the $8,000 homebuyer tax credit for first time homebuyers. The extension was set to expire at the end of June. The extension, sponsored by Rep. Frank Kratovil and his colleagues Rep. Travis Childers (D-MS) and Kathy Dahlkemper (D-PA), will extend the credit until October 1, 2010.
“The first time home buyer tax credit is working to revitalize the housing industry, a major indicator of the overall strength of the economy,” said Rep. Frank Kratovil. “However, more than 2,000 Marylanders who have already signed a contract to purchase a new home are having their closings delayed through no fault of their own. This common sense legislation will ensure that these individuals receive the tax credit that they rightfully deserve. Extending this tax credit will not only boost our economic recovery and support our housing market, but it is also the right thing to do.”
The bill extends the credit for all homebuyers with a binding contract as of April 30, 2010 so that they are afforded more time to close the sale and still benefit from the credit.
In late September Reps. Frank Kratovil (D-MD) and Travis Childers (D-MS) introduced a bill, The Tax Credit Extension for Homebuyers with a Loss Deduction Incentive Act (H.R. 3640), to extend the first time home buyer tax credit. A similar home buyer tax credit extension was eventually signed into law on November 6, 2009.
Timely action is essential. Only one more day of eligibility remains for the credit. Despite the urgency, as many as 75,000 buyers and sellers still await bank approval of short sales or must cope with delays caused by third parties with responsibility for closing the transaction. Those selling properties damaged in natural disasters also are experiencing significant delays as they repair and restore homes that were under contract.
Extending the closing date from June 30 to September 30 is a pro-consumer relief provision that will also benefit many communities. It assures the fair treatment of purchasers who have followed the rules and done their part to assure that the sale goes through. Congress must assure that those who have met the eligibility requirements for the credit and done all within their power to satisfy the timing requirements will not have to forfeit the credit because of events and challenges outside their control.
The Senate must vote on the bill now. Senate Majority Leader Harry Reid should be on a mission to get this pushed through the process. If you're one of the folks who need this deadline extended...get on the horn with your Senator and make sure this bill gets passed ASAP. (ugh I hope there isn't any bacon attached!)