There's activity in the U.S. Senate to extend the deadline and amount of this year's tax credit for first-time homebuyers.
The existing tax credit plan, part of the American Recovery and Reinvestment Act (ARRA), will expire at the end of November. It allows first-time homebuyers who buy a home on or after Jan. 1, 2009, and before Dec. 1, 2009, to file for a tax credit equal to 10 percent of the home’s purchase price, up to a maximum of $8,000.
Legislation proposed by Sen. John Isakson of Georgia (pictured) would extend the deadline through 2010, and increase the maximum amount to $15,000.
The bill, first introduced in the Senate this summer, failed in a close vote last month, but is gaining steam, according to an article published yesterday at Bloomberg.com.
Ask your VHFA participating lender for details on utilizing the tax credit.