Congress may extend first-time home buyers tax credit

WaPo columnist Kenneth Harney reports that congressional bills to extend the popular $8,000 first time home buyers tax credit into 2010 are getting traction. The deadline to take advantage of the currently-on-the-books credit is November 30 (less than 100 days away).

Also on the table are efforts to make the credit apply to all home purchases and to increase the tax credit to a maximum of $15,000.

Harney opines:

But can any of this happen before the Nov. 30 deadline? The key complicating factor here is Congress’s heavy load of higher-profile, pressing issues that will get attention before anything else in September and October. That includes health-care reform, climate change and energy, financial system regulatory reform and a new Consumer Financial Protection Agency, among others. On top of that, a tax-credit extension would cost billions in lost revenue — a big negative when the federal budget deficit is already wallowing in a record amount of red ink.

In the end, however, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner. Don’t bank on a bigger credit, however, or on a broadening of the concept to cover all buyers next year.

For it’s part, NAR is working hard behind the scenes to get the tax credit extended.

This entry was posted in Uncategorized. Bookmark the permalink.

4 Responses to Congress may extend first-time home buyers tax credit

  1. First-Time Home Buyers in Limbo As Congress Weighs Credit Extension … summer: Will Congress let this year’s $8000 tax credit for first-time buyers expire … Failure to extend what may be one of the most effective pieces of the Obama.

  2. If the tax credit itself is a stimulus, we may be looking at a lull in the coming months as buyers wait to see what congress decides. Should there be no lull…Perhaps there is no need for the stimulus…

    I’ll just be off to the side, perched on the fence…

  3. Carol Fentress,Realtor says:

    We are hoping there will be an extension, but the announcement of same needs to be times well. There is a sense of urgency right now because of the approaching deadline.
    I believe if the extension is announced to soon it will slow this down considerably and
    slow down this upswing. Perhaps an announcement of an extension would be appropriate in mid October. It appears that this stimulus is the only thing really working right now. However,because of this activity, it is encouraging other buyers to get off the fence and that is supporting the investors to buy distressed houses and prepare them for resale(flip).

  4. luis says:

    This post is good However, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner. Don’t bank on a bigger credit, however, or on a broadening of the concept to cover all buyers next year.
    undated20pcoin

Leave a Reply

Your email address will not be published. Required fields are marked *