10.28.09 Further Reports of Tax Credit Extension

Senate Democrats would like to extend the homebuyer tax credit. Details are scarce as an exact agreement has not been reached yet, and an amendment for an extension of the tax credit has not been brought to the Senate floor yet. According to this source, 'about 1.5 million tax returns filed with the Internal Revenue Service have claimed the credit, at a cost of $10 billion, since it was first approved in February 2008.' This measure clearly helped boost the housing market during the economic downturn. It remains to be seen if the first-time homebuyer tax credit will simply be extended into 2010 or if it will also be expanded to include all homebuyers and how it will be phased out. An extension of the tax credit is good news for local homebuyers who can continue to take advantage of great values in the Bay Area with the added incentive of tax relief.