Is the $8000 first time homebuyer tax credit extended?

Senate Banking Committee Chairman Christopher Dodd said Tuesday that the soon-to-expire $8000 tax credit for first time homebuyers has been extended! Although Dodd declined to specify the details of the new agreement. Careful though..... A Republican who works with Dodd cautioned that they were still negotiating on the measure, which could come up for a vote on Tuesday evening as part of a package that would also extend unemployment benefits. Republican Senator Johnny Isakson claimed that they are very close to making this extension a "done deal". There seems to be a hush on the new tax credit plan as no one wants to give out any real details at this time. This amazing tax credit has done great things for our local and national housing market which has helped to lift us all out of the worst slump since the Great Depression. Currently is it set to expire Nov. 30th. What we do know is that Dodd and Isakson want to extend the credit though June of next year and want to make the credit available to ANYONE buying a primary residence, not just first time buyers. Senate Majority Leader, Harry Reid has backed a different plan which would extend the full credit until March and then gradually phase it out through the end of 2010. The House, which would have to approve the measure, has yet to act. A Senate vote is expected around 6 pm tonight on whether to take up a bill to extend insurance benefits for unemployed workers. If Senate Majority Leader Harry Reid can get the 60 votes needed to do that, it would clear the way for further votes and he has said he would offer a tax credit extension as an amendment. Those votes could happen later this week or even into next week. The White House has raised concerns about the cost of expanding the credit. Lawrence Summers, President Barack Obama's top economic adviser, told Reuters last week that the administration would be open to extending the existing credit but wants to see it remain focused on first-time buyers. Simply extending the current tax credit is estimated to cost $1 billion a month. House Speaker Nancy Pelosi appears to be waiting to take her cue from the Senate. Asked about the tax credit earlier this month, the California Democrat said "the question is, would that be just first-time homeowners or would you open it up to other purchasers of homes?" A House Democratic aide said House leaders would likely adopt whatever language the Senate approves, which would avoid the need for negotiations to reach a compromise. Unlike the Senate, the House has already passed an extension of benefits for unemployment insurance. If my vote counted at all I would absolutely vote for the renewal of the existing tax credit. I cannot even begin to tell you the difference it has made between first time buyers being able to purchase a home or not be able to purchase a home. They are key to our housing recovery. Both locally as well as nationally, we ALL will benefit from well-qualified first time buyers being able to purchase homes. This in turn will free up the move up buyers to purchase their next home, so on and so forth. While our economy is recovering and our housing market is seeing signs of stability, it is all still very fragile and a sudden slowing in the housing market could send us moving backwards. This would not be good for anyone!

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