Congress passes Homebuyer Tax Credit closing deadline extension

Posted: 7/1/2010 Columbus Board of REALTORS®

Working up to the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010. There is will be no gap between June 30 and the date the President signs the bill into law, as he is expected to do.

Originally, the homebuyer tax credit extension had been part of the unemployment benefits bill that included federal aid to state governments and extensions of a host of expired tax breaks for businesses and individuals. But after that bill stalled in the Senate last week due to unanimous Republican opposition, the homebuyer measure was stripped out and passed separately.

NAR worked closely with Congressional leaders on both sides of the aisle to enact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension. The president is also expected to sign this measure into law.