Washington, D.C.—Today, Congressman Joe Donnelly voted to extend by five months the first-time homebuyer tax credit. The extension includes language similar to that in legislation recently drafted by Donnelly, allowing first-time homebuyers to claim the $8,000 tax credit as long as they are in a binding contract by April 30, 2010 and close on the house within 60 days of that date.
“The first-time homebuyers tax credit has boosted the housing market and helped make possible the dream of homeownership for many Americans,” Donnelly said. “Extending this tax credit is a common-sense way to continue to strengthen our housing market and, in turn, our economy. The concept from my bill that was included in this bill will allow thousands of homebuyers who enter into contracts ahead of the deadline to receive the credit even if they are unable to close before that same deadline.”
Donnelly introduced The First-Time Homebuyer Tax Credit Guarantee Act last month to make sure that, in the event that the tax credit was not extended, first-time homebuyers would be able to claim their tax credit as long as they were in a contract by November 30, 2009. The original tax credit stipulated that homebuyers had to close on a house by that date.
In addition to the extension, the legislation also includes a new $6,500 tax credit for current homeowners buying a new primary residence, as long as they have lived in their current primary residences for five consecutive years. It also expands the credit by increasing the income cap by 50,000 for individuals and $75,000 for married couples to $125,000 for individuals and $225,000 for married couples.
The legislation also extends unemployment insurance by an additional 20 weeks for workers in states like Indiana with unemployment levels over 8.5 percent.
The legislation will now go to the president for his signature.
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