House passes homebuyer tax credit extension

With the deadline looming, the House passed 409-5 a bill to give homebuyers an extra three months to take advantage of a federal tax credit. 

Homebuyers who qualified for the credit would have until September 30 — instead of June 30 — to close on their purchases. The tax credit, which required buyers to sign a contract on a home by April 30, provides homebuyers with a tax write-off of as much as $8,000.

The legislation is fully offset. 

The bill has bipartisan support in the Senate and is likely to be cleared before Congress leaves for the July 4 recess. 

The National Realtors Association is pushing for the extension because up to 180,000 homebuyers are in jeopardy of losing the tax credit without an extension. 

The legislation also would crack down on fraud identified in a recent report by the Treasury Inspector General for Tax Administration.

Today’s legislation helps ensure the credit works for people who followed the terms of the incentive and need a little more time to close on their pending contracts," said House Ways and Means Chairman Sander Levin (D-Mich.).