Latest news on tax credit extension.

This was posted today by Fox News. At least it's on the front burner now.

U.S. Senator Johnny Isakson of Georgia is sponsoring a bill that would extend the $8,000 tax credit for first-time homebuyers. The credit is set to expire soon, unless Congress and the White House can save it.

At a Senate Banking Committee hearing Tuesday homebuilders, mortgage bankers, realtors and other supporters said the extension is critical to continuing the effort to bolster home sales and to stabilize the housing market.

Supporters of the extension said the credit, which expires at the end of November, has helped sell more than 350,000 extra homes so far this year.

"If we don't do the housing tax credit, in my personal opinion, and extend it through mid-year next year and take away the first time home buyer means test and raise the income qualification, we will have a dramatic and awful situation in the United States of America from which recovery is going to be even more difficult than we've experienced already," said Sen. Isakson.

Under legislation proposed by Sen. Isakson, the tax credit would remain at $8,000 but it would be extended to all homebuyers, not just first time homebuyers.

Isakson's bill would allow the credit for home sales closed by June 30 of 2010.

The bill would also limit the credit to individuals who make less than $150,000 a year and to couples who make less $300,000 a year

The Congressional Budget Office said the proposal would cost $16.7 billion. The chairman of the banking committee, Senator Christopher Dodd, said he expects the Senate will vote to extend the credit in the next few days.

Housing Secretary Shaun Donovan said the Obama administration is reviewing the proposal and will announce which version of the credit it can support within the next few weeks.