Homebuyers who were in contract by April 30 but can’t close by June 30 may still be eligible for the federal homebuyer tax credit. On Wednesday, the Senate passed (60-37) a proposal set forth by Senate Majority Leader Harry Reid to extend the closing deadline from June 30 to September 30. The closing extension is the only change, contracts must still have been entered into by April 30. The reason for the proposal was, in Reid’s words, to enable “a backlog of 180,000 potential home buyers nationwide” who are experiencing lender or other delays that would prevent closing by June 30 to take advantage of the credit. It should be noted that this extension is an amendment to HR4213, The American Jobs And Closing Tax Loopholes Act of 2010 which still must pass House and Senate votes before becoming law.
Here’s more on specific benefits of the Federal Homebuyer Tax credit, and on the California Homebuyer Tax Credit, which is a $10k tax credit still available to CA homebuyers entering into new contracts now.