Tax Credit Paperwork Extension Denied

By rerockstar • June 25th, 2010

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Senate filibuster kills extension.

** UPDATE July 2, 2010 – Congress separated the first time home buyer tax credit and National Flood Insurance Program extensions from their original bill and passed them as H.R. 5623 and H.R. 5569 respectively. President Obama signed them into law on July 2, 2010. **

** Please note: the first time home buyer tax credit extension only applies to those who were already under contract as of April 30, 2010. **

This may be the last post I ever write about the first time home buyer tax credit. A Senate filibuster has blocked the bill, which among other things would have allowed an extension to the tax credit (really just an extension for paperwork, home buyers still would have needed to have been under contract by April 30, 2010), and a vote to break the filibuster has failed.

For home buyers who had a home under contract by the April 30th deadline, this means they must close the transaction by June 30, 2010 and no extension will be available. Based on the current political climate and the message that the filibuster was intended to send, I don’t think we will see any extension of the first time buyer tax credit, especially not a complete revamp as some had hoped for (i.e., making the tax credit available again into 2011).

photo courtesy of Robert van der Steeg