Extends Closing Date for First-Time Homebuyers by 90 Days
(WASHINGTON) Congressman Richard E. Neal welcomed the passage of legislation in the U.S. House of Representatives today that would give thousands of Americans an additional 90 days to close on their homes and take advantage of the popular first- time homebuyer tax credit. Under current law, taxpayers who entered into a contract to but a home by April 30 were required to close by June 3o to receive the credit. Under the Homebuyers Assistance and Improvement Act, H.R. 5623, these homebuyers will have until September 30, 2010 to complete their home purchase transactions. The legislation passed by a vote of 409 to 5.
There have been numerous reports of homebuyers experiencing delays that could prevent them from closing by June 30, meaning they would no longer qualify for the credit. Up to 180,000 homebuyers nationwide, and nearly 4,000 in Massachusetts, will lose their tax credit through no fault of their own if Congress failed to pass an extension to the homebuyers tax credit by June 30 when the closing deadline expires. The first-time homebuyer tax credit is an extremely popular and successful program that has helped Americans purchase homes and given a boost to the economy. The cost of the legislation is fully offset.
“”By any standard, this tax credit has been a great success story. Thousands of families in Massachusetts have taken advantage of this credit and purchased their first homes. Because of the program’s popularity, many families were concerned that they would not meet the original closing deadline of June 30. With today’s extension, there will be more local homeowners, more local construction jobs and a stronger local housing market,” said Congressman Richard E. Neal.
The legislation also cracks down on reported instances of fraud regarding the use of the tax credit as reported by the U.S. Department of the Treasury.