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Homebuyer Tax Credit Extension Headlines Confuse Many

07/02/2010

Anyone currently in the market for a new home hopes that the federal tax credit for homebuyers will be extended. But so far, an extension has not happened.
Some recent news reports suggest that the closing deadline of June 30, 2010 is not the end of the tax credit that has already helped millions of homebuyers. However, these reports are misleading. What the reports should say is that efforts to extend the tax credit deadline are in progress.

So far, the U.S Senate has approved a deadline extension. Any mention of the Senate's action is in fact, correct. What's misleading is failure to point out the remaining steps that must be taken before the credit extension bill becomes law.

After Senate approval, the House of Representatives must also approve the bill. Once both bodies approve it, the final step is presidential ratification. That's the way laws are passed in the U.S. And that means two more steps are needed before homebuyers can take advantage of another extension.

If another extension is signed into law, the new deadline for closing is expected to be September 30, 2010. Until then, the current law remains in effect. As of right now, homebuyers have until June 30, 2010 to close on a new home contract if they plan to take advantage of a federal tax credit up to $8,000

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