U.S. House passes Homebuyers Assistance and Improvement Act

WASHINGTON, D.C.—Congress moved ahead legislation that extends by three months the required closing date for a federal homebuyer tax credit for homes purchased through April 30, 2010. The Homebuyers Assistance and Improvement Act, H.R. 5623, aims to provide taxpayers who purchased a home by April 30 a closing deadline of October 1, 2010. Under current law, closings must occur by June 30.  The U.S. House passed the legislation by an overwhelming majority vote of 409 yeas to 5 nays—including supporting votes from both Rep. Mazie Hirono (D, HI) and Rep. Charles Djou (R, HI).

According to the National Association of Realtors, the closing of an estimated 710 home sales in the State of Hawaii will be delayed beyond the June 30 deadline.

H.R. 5623 extends the tax credit of up to $8,000 for qualified first-time home buyers, as well as a credit of up to $6,500 for repeat buyers purchasing a principal residence. If the bill is not signed into law, some 180,000 homebuyers across the country will lose their tax credit.

The Homebuyers Assistance and Improvement Act now goes before the U.S. Senate for consideration.