FACTS about Extension of FTHB Tax Credit

Is there an Extension of the FTHB Tax Credit?

Sorry, but as of Thursday the 29th, the short answer to this is No.

The flurry of news came from an unofficial statement made by an aid to Senator Harry Reid coupled with a public statement made by Senator Chris Dodd who told reporters on Tuesday that he had a "Done Deal." Unfortunately, this is the way Washington DC works, and the media ran with the story before confirming the facts.

The Facts as of October 29th

Senators Reid, and Baucus are trying to add an amendment to a bill extending unemployment benefits that would extend the current Tax Credit until the end of next year. However, this would not open the credit to existing homeowners, or change the amount of the credit. Also, the credit would be phased out completely over that time period. The Current $8,000 would be trimmed to $6,000 at the start of the 2nd quarter of 2010, then $4,000 for the 3rd quarter, and $2,000 for the last quarter.

The Good News is that there is widespread support for the extension, but the reality is we are still waiting for both Houses of Congress to vote on anything, and the White House is now expressing concern over costs of extending the Credit.