The House Passes the Homebuyer Tax Credit Extension

The House Passes the Homebuyer Tax Credit Extension

The House voted 403 to 12 Thursday afternoon to extend the $8,000 first-time homebuyer tax credit until April 30, 2010.

The legislation will also expand the tax credit to include home buyers who are buying their second or subsequent home. The tax credit for existing or past homeowners will apply only to those who have owned and lived in their primary home for at least five of the last eight years. The tax credit for these homebuyers will be capped at $6,500.

Income limits will be increased from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 for a single purchaser and $225,000 for couples. Diminishing tax credits will be available for those who earn more.

The Senate has already voted on and passed the measure Wednesday evening. It's expected the president will sign the measure into law Friday morning.