Senate democrats have reached a compromise to extend the current tax credit for first time home buyers and expand it to include step up buyers that have lived in their current home for at least 5 years.
The latest version being proposed by the Senate extends the homebuyer’s tax credit for buyers that have entered into a sales agreement by April 30, 2010. Buyers would then have up to 60 days beyond April 30th to actually close on the purchase to maintain eligibility.
According to Bloomberg News, the credit would be cut slightly to a $7,290 cap with income eligibility requirements remaining the same for first time home buyers at $75,000 for individuals and $150,000 for couples. But for step up buyers the income eligibility requirements would be raised to $125,000 for individuals and $250,000 for couples. The credit amount for step up buyers would be slightly less at 10% of the sales price to a maximum of $6,500.
Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan called on Congress to approve key housing measures that include the tax credit and have stated, “We welcome efforts taken by Congress to extend the First-Time Homebuyer Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide. In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners.” 
While the extension and expansion of the home buyer’s tax credit has not yet passed, Senate Lawmakers have called on Congress to approve this and other key housing measures.
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