Senate Passes Bill on Tax Credit

The US Senate passed the extension of the First Time Home Buyer Tax Credit by a vote of 98-0. The measure was added to a bill which provides an extension of unemployment benefits and also allows all businesses that have incurred losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years. The legislation would extend the $8,000 tax credit through June of next year as long as the buyer enters into a binding contract before April 30. It doubles the income ceiling for qualification to $125,000 for individuals. The credit is available for homes purchased at under $800,000. The measure also strengthens the ability of the IRS to stop people who are not eligible for the program from filing fraudulent claims. It includes a $6,500 credit for existing homeowners who have been in their homes for at least 5 years. Sen. Johnny Isakson, R-Ga., a cosponsor of the measure said, "[it] is going to help us boost what is the problem in the U.S. housing market today and that is what is called the move-up market." The bill should be passed by the house shortly and sent on to President Obama for signature. Ed.Note: The House approved the measure today on a 403-12 vote, sending it to President Barack Obama for his signature.