President Obama signs tax credit extension/expansion

President Obama has approved the extension and expansion of the federal homebuyer tax credit. The measure is part of H.R. 3548, the Unemployment Compensation Extension Act. 

Under the bill, the deadline for the first-time buyer tax credit of up to $8,000 would be extended through April 30, 2010. Buyers would need to have a contract to purchase in place by April 30 and would have until July 1, 2010 to close. The credit also would be expanded to provide up to a $6,500 tax credit for qualifying prospective buyers who already own their home and who have lived in it as their principal residence consecutively for five of the last eight years. Eligible income limits would be increased and homes costing more than $800,000 would not be eligible for the credits.

• Learn more about the tax credit
• Listen to a podcast from NAR President Charles McMillan
• Read NAR's comparison chart on the tax credit changes
• FAQs about the tax credit changes