NEWS

Fri, Nov 06

Congress extends unemployment benefits; homebuyer tax credit

Congress passed legislation this week extending unemployment benefits in every state and renewing the $8,000 tax credit for first-time home buyers through June 2010.

The Senate passed the bill 98-0 on Wednesday, and the House approved it 403-12 this afternoon. President Obama is expected to sign the legislation in the next few days.

The bill extends unemployment benefits by 20 weeks in more than two dozen states where unemployment rates are above 8.5 percent, and 14 weeks elsewhere. The $8,000 tax credit for first-time home buyers was due to expire at the end of November. It’s now extended through June 30, 2010 as long as the home buyer signs a contract by April 30 and closes on the house by June 30. The bill also makes a $6,500 credit available to anyone who buys a new home and has owned their current home for at least five consecutive years within the previous eight years. The bill increases the eligibility for both credits to individuals making up to $125,000 and couples making up to $225,000.

“With 15 million Americans still unemployed and vying for just three million available jobs, we did the right thing today by passing this bill and doing it in a fiscally responsible way,” said Senate Finance Committee Chairman Max Baucus (D-MT).

More tax extenders could be on the way, although health care reform legislation has consumed the Senate Finance and House Ways and Means Committees for much of the year and legislators won’t know what revenue raisers might be available until they see what the final health care package looks like. Tax credits for research and development and the deduction for state and local sales taxes are due to expire at the end of the year.

SEND THIS PAGE TO A FRIEND