The measure is expected to be approved by the House (already passed by the Senate with a 98 to 0 bipartisan vote) and signed by Obama within days. The goal is to give the real estate market an added boost and to expand the credit to existing homeowners.  Also approved was a provision to continue giving aid to the long-term unemployed.

To keep fueling the real estate rebound, the legislation would extend the $8,000 tax credit for first-time home buyers who are under conract by April 30 and close within 60 days of this date. It currently is set expire on November 30, 2009. More importantly, it also would provide a new $6,500 tax break for existing homeowners who want to move up to a new home, as long as they have lived in their current residence for five consecutive years out of the last eight.

The bill also would increase the level of qualifying incomes to $125,000 for individual tax filers and $225,000 for joint filers. Those earning up to $145,000 individually or up to $245,000 jointly would get a smaller credit that decreases as income rises.

The tax credits apply to home purchases of $800,000 or less.

"Every economist will tell you we have to steady the housing market before the economy will turn around," said Sen. Christopher Dodd (D-Conn.). "We can't afford to let this tax credit expire now."

With the unemployment rate at 9.8% and expected to go higher, senators voted to extend jobless benefits by 14 weeks in all states and 20 weeks in the hardest hit states, including California.

For all companies, the measure would allow them to use any losses this year or last year to offset taxes paid in the previous five years. A similar measure was included in the economic stimulus legislation approved earlier this year, but was limited to small businesses.

Source of data from an article written by jim.puzzanghera@latimes.com. 

Valery Blank, Houston, TX - Realtor – DGR, CDPE, AHS
Certified in Fine Homes & Estates