Right now a battle is being waged in the House of Representatives over extension of the $8000 tax credit for first-time buyers. On Monday the House voted unanimously to extend the deadline for one group of home buyers. The extension was granted for military personnel, Foreign Service and intelligence officers. HR 3590 was passed granting the extension to those that meet the underlying criteria and who are serving overseas or have spent at least 90 days deployed outside of the US during the current calendar year. The bill was introduced by Rep. Charles Rangel (D-NY) because families serving overseas were being passed over for the one time opportunity to purchase a home. Under the original law, a homeowner was required to occupy the home for 36 months or the credit would be recaptured. Because the military and other Foreign Service employees frequently relocate many have been reluctant to apply for the credit even if they did purchase a home.
As far as the extension for the rest of us, there is no news as of yet as to whether any extension will be approved. Both the National Association of Realtors and the National Association of Home Builders are strongly in favor of the extension.
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