Congress passes Home Buyer extension

Congress passed legislation expanding an $8,000 tax credit for first-time homebuyers.

The House approved the measure today on a 403-12 vote, sending it to the President for his signature.

In summary here's what it does:

• Extend through April 30, 2010 the tax credit for first-time homebuyers (up to $8,000 or up to 10 percent of the purchase price of the residence), allowing 60 days to close, provided that the homes are under a binding contract by that date;

• Provide homebuyer tax credit of up to $6,500 to owners who have been in the same principal residence for five consecutive years during the previous eight years;

• Increase the income limitations to $125,000 for individuals and $225,000 for joint filers;

• Phase out the credit for individuals with incomes above $125,000 and $225,000 for joint filers at the same rate as current law (over the next $20,000)

• Limit the credit to purchase of principal residences equal to or less than $800,000;

• Eliminate the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell as a result of an official extended duty of service; and

• Extend the  tax credit for one year for military personnel serving outside the United States for at least 90 days in 2009 or 2010.

More details.