Senate passes expanded, extended home buyer tax credit 98-0

UPDATE: The House passes the bill. Obama expected to sign it before the weekend.

According to NAR, yesterday the Senate voted 98-0 to extend and expand the home buyer tax credit. WaPo article on the vote.

The House is expected to accept the Senate version as early as today and, from there, the bill will go on to the White House, and the President has indicated he will sign it.

Here are the bill’s provisions as they relate to the home buyers credit:

Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.

  • Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
  • New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
  • Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
  • New anti-fraud limitations are imposed.
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