H.R. 5623 would extend the homebuyer tax credit of up to $8,000 for the purchase of a principal residence before October 1, 2010.  The current benefits apply to cover buyers who enter into contracts before April 30 and close by June 30.  This bill would extend the closing date to September 30, 2010.

The bill would provide any homebuyer who entered into a contract on a home by April 30, 2010, but have been unable to go to closing within the required 60 days; the provision would extend the closing date for an additional 90 days.  This provision is estimated to cost $140 million

The bill would enhance information sharing to prevent prisoners from claiming the Homebuyer tax credit.

The bill would apply a bad check penalty to electronic checks.  Under current law, taxpayers who submit a bad check or money order to the IRS must pay a penalty of 2% of the amount of the check or money order.  If the amount is less than $1,250, the penalty is the lesser of $25 or the amount of the check.  Effective after the date of enactment, the provision would apply the penalty to all commercially acceptable instruments of payment.

This bill would modify Travel Promotion Act of 2009.  This provision would extend the authority of the Department of Homeland Security to implement fees related to the recently-enacted Travel Promotion Act for one year, through fiscal year 2011. This provision would reduce the deficit by $95 million over 11 years.

Please email me at dgeibel@cascademortgagewa.com with any questions.