By Vicki Needham - 06/30/10 12:30 AM EDT
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 costs $140 million. The House offsets would raise $9 million in revenue while the Senate's would raise $6 million over 10 years through three pay-fors, two that are the same.
The Senate and House have included two identical offsets -- disclosure of prisoner return information to state prisons that would bring in $6 million through 2020; and another $95 million that would be collected over the next decade with an change to the travel promotion act, according to the Joint Committee on Taxation.
Those House has a $48 million offset are an application of a bad checks penalty to electronic payments while the Senate rescinds $94 million from non-Recovery Act Defense Department unobligated balances that will expire September 30. The provision is estimated to save $45 million over 10 years, according to the Senate Finance Committee.
The National Realtors Association has pushed 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.