Senate negotiators have reached a tentative deal to extend the existing first time home buyer tax credit. The current tax credit is set to expire at the end of November.
To be clear, the current 8000 first time home buyer tax credit has not yet been extended. But this current agreement is the first sign of life that has indicated that Congress potentially intends to do so.
8000 Tax Credit Extended
The agreement would extend the existing 8000 tax credit for first time home buyers and expand the credit to include current homeowners who want to move in order to give the weakened real estate market a bigger boost.
Senators have not agreed on how the tentative deal would come up for a vote, but both Democratic and Republican sources have said they are considering adding the housing credit to a bill that would extend unemployment benefits.
House Speaker Nancy Pelosi has indicated she also is interested in extending the homeowner credit, but House leaders have yet to endorse any one bill.
As I reported previously, there are currently five bills that have been introduced in Congress that would extend the existing tax credit. However, none of these have moved farther than the “referred to committee” status.
