Thursday, July 1, 2010

Senate Approves Homebuyer Tax Credit Extension: What's Next?

It's almost official: The Senate approved a three-month extension on the homebuyer tax credit for buyers in escrow late last night. The House voted in favor of it 409 to 5 on June 29. The Senate vote was unanimous.

Now the bill must be signed by President Obama, which may happen as soon as today.

But will the extension cover those buyers unlucky enough to fall between the deadline and ratification?

The chances are good. The homebuyer tax creditwas extended through September by the House on Tuesday, just one day shy of the June 30 deadline. On Wednesday evening, the Senate unanimously approved the bill, giving homebuyers with pending purchases until the end of September to qualify for the credit. Clearly Congress has made its passage a priority.

The only problem is, even if the president signs the bill today, it remains unclear as to whether or not the extension will function retroactively, thereby including those buyers who could not close between midnight on June 30 and the eventual signing.