On Wednesday, the Senate adopted an amendment to the tax extenders bill that would tweak the home buyer tax credit. As you are likely to get calls about this change, and it may cause some confusion, NAHB wanted to make sure you were aware of it.
There are two key deadlines to qualify for the tax credit. First, the buyer must be under contract on or before April 30. Second, the buyer must close on the home on or before June 30. Some buyers – particularly those purchasing distressed properties (such as short sales) – are finding that the mortgage approval process is taking longer than expected, and they may be in danger of not qualifying for the tax credit. Closings in certain parts of the country have also been delayed due to recent natural disasters.
In response, Harry Reid (D-NV) and Johnny Isakson (R-GA) offered amendments to the extenders bill that would extend the closing date deadline for the home buyer tax credit from June 30 to September 30 on homes under contract on or before April 30. The Senate adopted this amendment on Wednesday.
Please note, this is not an extension or expansion of the original tax credit—the eligible buyer must have been under contract by April 30. The amendment only allows the buyer additional time to close on the home. The change, however, will benefit a number of builders who are facing delayed closings or completed construction dates.
The Senate is trying to wrap up consideration of the extenders bill this week, but a final vote could spill into next week. The House will then have to approve the changes made by the Senate. At this point, NAHB expects a final bill to reach the President’s desk sometime next week.
If you have any questions or need more information, please contact J.P. Delmore, NAHB Senior Federal Legislative Director, at 800-368-5242 x8412 or jdelmore@nahb.org.
