Tax Credit Expansion Passes in Senate...Take it to the House!

The extension and expansion of the first-time buyer tax credit (now for some other buyers as well) passed through the Senate yesterday and should get through the house and onto the President's desk soon. The details of the expansion are:

$8,000 tax credit for first time buyers extended to those under contract by April 30, 2010 with 60 days to close after that.

Income limits increased to $145,000 for single taxpayers and $245,000 for married couples, with phaseouts beginning at $125,000 and $225,000 respectively.

Eligibility for up to $6,500 in tax credit is extended to repeat buyers who have lived in their home for at least five of the past eight years. These are typically the move-up buyers who will be selling to first-time buyers so this should really help to get the market moving for a few months (and of course lead to a bubble that has to deflate come next summer).

To be eligible for either credit the price of the home being purchased must be under $800,000.

If you're thinking of buying or selling this extension creates a limited-time window where the market should be quite active - strike while the iron is hot.