Senate passes Homebuyer Assistance and Improvement Act to extend homebuyer tax credit

Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (HR 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is Sept. 30, 2010. There will be no gap between June 30, 2010 and the date President Barack Obama signs the bill into law, who is expected to sign HR 5623 today. The measure was in jeopardy of not passing the Senate as nearly 180,000 homebuyers would have lost their tax credit. Included in that number are thousands of homebuyers in each state, from 390 in Wyoming, to 17,700 in California, according to estimates by the National Association of Realtors (NAR). The initiative passed the House with a 409-5 vote on Tuesday to extend the deadline, and the Senate approved the measure on a voice vote late Wednesday. "I thank my colleagues for joining me to pass this important extension and giving homebuyers in Nevada and around the country the opportunity to purchase their first home," Sen. Harry Reid (D-NV) said. "In addition to helping thousands of families experience the American dream, this successful and popular program provides a much needed boost to Nevada's housing market and economy."