Tax Credit Extension Likely

According to Senator Bill Nelson (D-FL) passage of an extension to the first-time buyer tax credit seems likely. The most likely format for the extension will be an extension of the current $8,000 tax-credit program through March 31, 2010. After that the maximum tax credit would be reduced by $2,000 per quarter through the end of 2010. This seems like a reasonable way to ease the housing market off it's tax-credit addiction. It hasn't passed yet, but buyers who are rushing to close by November 30th - the current expiration date - may be able to breathe a little easier knowing that additional time is likely on the horizon.