U.S. seen extending homebuyer tax credit soon

By Reuters Staff
October 26, 2009

A vacant lot owned by Toll Brothers is shown for sale in a housing development in Broomfield, Colorado August 12, 2009. REUTERS/Rick Wilking (UNITED STATES BUSINESS)  By Steve Holland and Corbett B. Daly
WASHINGTON, Oct 26 (Reuters) – The U.S. Senate is expected to act later this week to extend a popular tax credit for first-time homebuyers that is scheduled to expire at the end of next month, Sen. Bill Nelson said on Monday.

“We should be able to extend that later this week,” Nelson, a Democratic member of the Senate Finance Committee, told reporters before joining President Barack Obama on an Air Force One flight to Florida.

A number of proposals to extend the $8,000 tax credit are being considered in the Senate.

Senate Majority Leader Harry Reid floated a proposal
last Friday to extend the first-time homebuyer tax credit through Dec. 31, 2010.

Under Reid’s plan, the $8,000 tax credit would be phased out over time, dropping to $6,000 in April, $4,000 in July, and $2,000 in October, before expiring at the end of 2010.

Reid’s offer is a counterproposal to Sen. Johnny Isakson, a Georgia Republican, who wants to extend the $8,000 tax credit through June and expand it to all buyers of homes that will be a primary residence.

Isakson, a former real estate agent, would also raise the income limit of eligible homebuyers to $300,000 per family from the current $150,000 limit.

Reid is in the midst of negotiations with Senate
Republicans over a pending proposal to extend insurance
benefits for the jobless, and a procedural vote on unemployment insurance is expected Tuesday.

If lawmakers can hash out a deal, the housing credit would be attached to the unemployment insurance measure, a Democratic aide told Reuters.

The U.S. real estate and homebuilding industry is lobbying Congress to extend the tax credit although critics say it gives cash to many buyers who would have purchased a home without the benefit.

The White House has also raised concerns about the cost of expanding the credit.

Lawrence Summers, Obama’s top economic adviser, told
Reuters last week that the administration would be open to
extending the existing credit, but wants to see it remain
focused on first-time buyers.

The tax credit was approved in February 2008 and about 1.5 million tax returns filed with the Internal Revenue Service have claimed the credit at a cost to the government of $10 billion, according to officials.

((Reporting by Corbett B. Daly and Steve Holland, Editing by Gary Crosse))
((corbett.daly@thomsonreuters.com, +1-202-904-0962))
26OCT09 15:31RTRS [nN26135701] {EN}ENDS

No comments so far

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Websites we think you should visit

[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]…

Websites worth visiting

[...]here are some links to sites that we link to because we think they are worth visiting[...]…

Gems form the internet

[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]…

Related…

[...]just beneath, are numerous totally not related sites to ours, however, they are surely worth going over[...]…

Visitor recommendations

[...]one of our visitors recently recommended the following website[...]…

Blogs ou should be reading

[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]…

Superb website

[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]…

Websites we think you should visit

[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]…

Websites you should visit

[...]below you’ll find the link to some sites that we think you should visit[...]…

Blogs ou should be reading

[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]…

Websites you should visit

[...]below you’ll find the link to some sites that we think you should visit[...]…

Recent Blogroll Additions…

[...]usually posts some very interesting stuff like this. If you’re new to this site[...]…

Check this out

[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]…

Sources

[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]…

Blogs ou should be reading

[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]…

Websites worth visiting

[...]here are some links to sites that we link to because we think they are worth visiting[...]…

Superb website

[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]…

Superb website

[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]…

Gems form the internet

[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]…

Cool sites

[...]we came across a cool site that you might enjoy. Take a look if you want[...]…

Websites worth visiting

[...]here are some links to sites that we link to because we think they are worth visiting[...]…

Awesome website

[...]the time to read or visit the content or sites we have linked to below the[...]…

Great website

[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]…

Check this out

[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]…

Websites worth visiting

[...]here are some links to sites that we link to because we think they are worth visiting[...]…

Great website

[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]…

Gems form the internet

[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]…

Superb website

[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]…

Visitor recommendations

[...]one of our visitors recently recommended the following website[...]…

Great website

[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]…

Check this out

[...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]…