Not So Fast Folks - First Time Home Buyer Credit Not Extended

By Cristina Callegari Kanellopoulos

There was a misleading media frenzy this morning reporting that the First Time Home Buyer Credit has been extended. Unfortunately, this isn't accurate.

Here are the facts:

• The tax credit extension is NOT currently a stand alone bill. It is being packaged in as part of a compromise on the EI (Employment Insurance) Bill currently in the Senate.
• Democrat and Republican Senators alike are in the process of negotiating the EI Bill with the tax credit included as an amendment. If they agree on the proposed amendments to the EI Bill, it is possible that the Tax Credit Extension Bill could pass the Senate as early as this week.
• The House of Representative has released a statement that they will agree to whatever the Senate decides. If that is the case the Tax Extension could be passed as early as next week in the Senate and House of Representatives.
• If the Senate does not agree to the amendments in the proposed EI Bill, a separate stand-alone Bill will need to be introduced to the Senate. This Bill will likely be introduced by Senators Johnny Isakson (R-GA who is also a Realtor) and Chris Dodd (D-CT).

While there is no guarantee that the EI Bill will pass with the First Time Tax Buyers credit as an amendment, I remain hopeful that it will.

I will continue to keep you updated on the subject.