Homebuyer Tax Credit Extension Debate Heats Up

The Senate is slated to take up a bill this week that extends unemployment benefits and it might include an extension of the $8,000 homebuyer tax credit. Proponents of the first-time homebuyer tax credit that is due to expire Nov. 30 were planning to offer amendments to unemployment benefits bill that would extend and possibly expand the tax credit. But now it appears Senate lenders are working on a compromise that could be tucked into the bill as a manager's amendment. Such an approach would increase the chances that the first-time homebuyer tax credit would be extended by at least six months. And depending on the costs, it might include features of a proposal sponsored by Senators Christopher Dodd, D-Conn., Johnny Isakson, R-Ga., and Joseph Lieberman, D-Conn., that extends the tax credit through June 30. The Dodd-Isakson-Lieberman proposal expands the tax credit to all buyers and raises the income limits to $150,000 for individuals and $300,000 for joint returns.