Senator Says Extension Of First Time Homebuyer Credit Likely

10.27.09 | FL News Team

Lawmakers are beginning to talk out how to extend a tax credit for first-time homebuyers. The eight-thousand-dollar credit will expire at the end of November unless lawmakers take action. Florida Senator Bill Nelson said the extension should be happening this week. Several proposals are under discussion. Senate Majority Leader Democrat Harry Reid of Nevada has suggested extending the credit through the end of 2010. Reid's plan would have the credit phased out over time. Republican Senator Johnny Isakson has suggested extension of the credit though June of 2010. The Georgia lawmaker also wants to give the break to all buyers of primary residences, while raising the household income eligibility threshold to 300-thousand dollars a year from 150-thousand dollars a year.

A top economic adviser to President Obama wants limits to remain. Lawrence Summers says the administration will consider extending the tax credit, but wants it to be available only to first-time buyers.