The current incarnation of the Home Buyer Tax credit requires contracts accepted before April 30, 2010 to close escrow by June 30, 2010 in order for the purchaser to claim a tax credit of up to $8,000 (or up to $6,500 for non-first time home buyers).Yesterday, Senators Harry Reid of Nevada, Johnny Isaakson of Georgia, and Chris Dodd of Connecticut introduced an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 (H.R.4213) that, if passed, would extend that closing deadline to September 30, 2010.
This amendment does NOT change the fact that you had to be under contract by April 30 to claim the tax credit. It just changes the date the transaction must be closed by in order to claim the credit. Apparently the Senators have realized something any agent marginally versed in real estate sales could have told them – many real estate transactions, especially short sales, take more than two months to close.
H.R.4213 has already passed the House, and has wide support in the Senate. Once all the amendments (including this one) are hashed out and attached, the House and Senate versions would have to be reconciled and then sent to the President for signature.
Given the level of support for the main thrust of the bill (extending Unemployment Insurance, extending a scheduled 21.2% cut in Medicare reimbursement to doctors, and creating jobs) my guess is this will pass and the Home Buyer Tax Credit closing deadline will be extended to September 30.
But we’re talking politics and Washington, so anything can happen… Someday, maybe, hopefully, they’ll let the damn thing just die.