On June 29th, the House passed the Homebuyers Assistance and Improvement Act (H.R. 5623) to help homebuyers. For those who entered into a contract to buy a home by April 30, this legislation extends until October 1st the deadline for closing in order to be eligible for the first-time homebuyer tax credit. Under current law, these homebuyers were required to close by June 30th to receive the credit.
There have been numerous reports of homebuyers experiencing delays that could prevent them from closing by June 30th, meaning they would no longer qualify for the credit. Up to 180,000 homebuyers will lose their tax credit through no fault of their own if Congress fails to pass an extension to the homebuyer tax credit by June 30 when the closing deadline expires.
Now, more than ever, we need to ensure that families across America have the ability to own a home. The first-time homebuyer tax credit is an extremely popular and successful program that has helped Americans purchase homes and given a boost our economy.
The measure is fully paid for by applying a current-law penalty for bad checks to electronic payments, permitting disclosure of prisoners' tax return information to crack on instances of fraud regarding first-time homebuyer tax credit, and changing rules relating to fees for a travel promotion fund.