Senate to Vote on Extending Tax Credit

Reid-Baucus plan would push $8,000 credit for first-time homebuyers to 2010.

By Staff (Oct 28, 2009 )

Senate to Vote on Extending Homebuyer Tax Credit
Faced with a potential drop in real estate sales, the Senate is voting to extend the popular $8,000 tax credit for first time homebuyers, which is due to expire on Nov. 30.

A new plan, proposed by Senators Harry Reid of Nevada and Max Baucus of Montana, would extend the tax credit until the end Q1 in 2010, and then reduce it gradually by $2,000 in each successive quarter.

An alternative plan, also being considered, would extend the credit until the end of Q2 of 2010, open the credit to all homebuyers, not just first time buyers, and increase the income cap to make more people eligible. The plans are expected to be voted on this week.