Ruppersberger Praises House Passage of Bill Extending Help for First-Time Homebuyers

(Washington, DC) – Congressman C.A. Dutch Ruppersberger (D-MD) today praised passage of legislation that will extend the deadline for a federal tax credit for certain first-time homebuyers until Oct. 1, 2010.  Under current law, the tax credit of up to $8,000 is set to expire on June 30, 2010.  The extension will help families already in the process of buying a home, but facing unforeseen delays closing on the property before the current deadline. 

H.R. 5623, the “Homebuyers Assistance and Improvement Act,” which passed the House 409-5, now goes to the Senate, where a similar bill has been introduced.  The new deadline applies only to homebuyers who signed purchase agreements by April 30, 2010. So far, the tax credit has helped more than 4 million families achieve the American dream. This bill will assist an additional 180,000 Americans, many who are encountering a backlog getting their mortgage processed and the deal finalized.

“This tax credit is working.  It gave a much-needed boost to Maryland’s housing market.  When buying a home, there can be many unforeseen delays.  This legislation gives Maryland families a little extra time to close the deal and make the dream of home ownership a reality,” said Congressman C.A. Dutch Ruppersberger (D-MD).   

The tax credit for first-time homebuyers took effect last year.  A study from the National Association of Realtors found the tax credit was responsible for half of all homes purchased in Maryland in 2009. Congress also created a new credit of up to $6,500 for existing property owners who sell their home and buy another during the same period of time.