Tax Credit Likely to Expire June 30

An amendment that would have extended the U.S. Homebuyer Tax Credit closing deadline from June 30 to Sept. 30 died with the American Jobs and Closing Tax Loopholes Act of 2010, which also would have extended U.S. jobless benefits. The Senate voted 57-41 against the legislation on June 25.

Had the extension passed, it would have given homebuyers who were under contract by April 30 more time to complete their sales. NAR estimates that as many as 180,000 buyers could miss out on the credit without an extension because of circumstances beyond their control. Short Sale and REO transactions are holding up many of these closings.

“Unfortunately, the amendment was attached to a piece of legislation that ended up being very controversial,” says Dave Liniger, RE/MAX Chairman and Co-Founder. “RE/MAX agrees with the National Association of Realtors leadership on the idea of extending the tax credit closing deadline, because it’s the right thing to do. We’ll continue to speak out in favor of the extension.”

Liniger urges homebuyers who are waiting to close to stay in touch with their Realtor and contact their U.S. senators to urge swift action on the tax credit extension.