Senate Democrats plan to extend an $8,000 tax credit for first-time homebuyers and allow benefits for some people who already own residences.  In a nutshell, the proposal would extend the existing tax credit to home purchases under contract by April 30, 2010 and allowing another 60 days for the closing.  In addition, some current homeownwers may qualify for a $6,500 tax credit for purchasing a new primary residence.  This piece could really influence our market by providing an incentive for the "move-up" buyer!

 

Senate Minority Leader Mitch McConnell, a Kentucky Republican, said most lawmakers support the homebuyer measures.  "We're not that far away from an agreement," he said earlier today. 

 

Apparently what is holding up this measure isn't the bill itself but how it is packaged.  Reid had wanted to attach a bill to extend the homebuyer credit as an amendment to legislation to lengthen insurance benefits for unemployed workers. The Senate voted to take up the insurance benefit bill on Tuesday, but did not attach the homebuyer tax credit to the measure.

 

There are various paths and whichever works first is the one that is going to be followed", Senate Finance Committee Chairman Max Baucus said, referring to the possibility that the Senate could vote on the bill independently or as part of separate legislation.

 

Stay tuned for more details as they hti the wire!

 

Denelle