The home buyer credit, extended and expanded over the last 3 years is set to expire at the end of this month with Congress still unable to approve the extension as part of HR 4213. However, recently released data for May 2010 shows worrying trends of sharply declining sales of existing and new homes. Further, inventory data and foreclosure activity have not shown any signs of improvement. All this suggests that the expiration of the home buyer credit may have more of an impact than people thought.
This has prompted Congress to take more action with the stalling of the HR 4123 bill in Congress, due to other provisions. As such 2 new bills have been introduced to try and extend the home buyer credit and also unemployment insurance – 2 key bills that Congress is likely to approve given their importance to their constituents. These bills are:
[APPROVED] H.R. 5623 – Homebuyers Assistance and Improvement Act of 2010. Among other items, this bill would extend the homebuyer tax credit of up to $8,000 for the purchase of a principal residence before October 1, 2010. The current benefits apply to cover buyers who enter into contracts before April 30 and close by June 30. This bill would extend the closing date to September 30, 2010.
The bill would provide any home buyer who entered into a contract on a home by April 30, 2010, but has been unable to go to closing within the required 60 days, an additional 90 days to close and qualify for the credit. This provision is estimated to cost $140 million
[Update on voting] The bill passed 409-5. It now goes to the Senate, where Senate Majority Leader Harry Reid, D-Nev., has sponsored a similar measure. The popular tax credit has helped to stabilize the nation’s slumping housing market. More than 2.6 million taxpayers claimed the tax credit through April — claiming $18.7 billion — according to the Internal Revenue Service.
The bill has now passed in the Senate without amendment by unanimous consent. It now goes to the President, who is expected to sign the bill into law in the next few days. See this post for more details.
[Senate to Vote] H.R. 5618 Restoration of Emergency Unemployment Compensation Act. This bill would provide an extension of unemployment insurance through November 2010, including 100 percent of the federal funding for the extended benefit program. The provision would preserve the 99 weeks of state and federal unemployment benefits. The bill will be declared as emergency spending and add $34 billion to the deficit. This bill does not extend the payment of the $25 per week additional payment that was provided in the “stimulus.”
The approval of these bills would be great news for many home buyers who signed a purchase agreement/contract prior to April 30th but are having difficulty closing before June 30th. and for the millions of unemployed who are set to lose their unemployment and insurance benefits at month end.
[Update on voting] After failing to pass an extension of unemployment benefits earlier this week, the House tried again — and succeeded, 270 to 153. The Senate will take up its version of the bill when Congress returns from a week-long break, on July 12. By the time the Senate acts, approximately 2.5 million people will have stopped getting unemployment checks.
Republicans still oppose the bill because it’s costs, approximately $34 billion, were not offset with new revenue. Since the financial crisis of 2008, Congress has routinely passed unemployment insurance extension bills without offsets because benefit payments to help the unemployed are considered “emergency spending” and are not subject to pay-as-you-go rules.
I will continue to monitor the status of these bill′s approval through Congress and will update with new information. I encourage you to subscribe (free) via Email or RSS to get the latest updates.
19 thoughts on “New Bills for 2010 Home Buyer Credit and Unemployment Insurance Extension”
Just an update – The home buyer credit has expired for all parties. See some of my more recent post of possible 2012 economic stimulus plans.
any new home buyer tax credit extension rumors? Will they extend the tax break again or create a new home buyer tax credit since the housing market fell since the tax credit expired.
yeah, pass the bill and borrow money from China. We are not going to pay back anyway.
I have seen a person in NY unemployed for two and half a year and still living in his $400 apartment. Do you really think he couldn’t find a job? or he just doesn’t care?
Does this extension affect everyone on unemployment, such as those who are on tier 4 or 5? This article doesn’t say either or.
Hello I purchased a home in early June and will close next week in July. Do you know if the extension will also apply to new home buyers? Or will there be any new programs like the First Time Home Buyer incentives? Thanks for your help.
No. It only covers people who bought before Apr 30. The Sept 30 extension is for closing the deal.
You are not unemployment. There is no unemployment will purchased a home. You are one of the people that believe they shouldest give any extension to unemployment. but you are trying to do it with smart way.
God will bunch you if you stand against poor unemployment
For goodness sake ,this bill needs to move forward now.We have thousands of families affected here…The previous working people whom have lost there jobs….Would you cut off Welfare?Well then why are you punishing people whom lost the good jobs and have not found another job yet?These pepople have families and have worked all there lives and then some.Please hurry you are hurting those whom are really trying to make it thru this horrible time in their life.You need to create jobs,and maybe even add some schooling discounts for those hit by this unemployment recession.Have a heart and think of it as “The Working People”,ya the people whom did not ask to lose there jobs,homes and ect……………..
Is Congress going to pass any sort of extension? I heard they were voting again today… Also I have to wonder how long it will take for them to actually release funds. The first is tomorrow and for a lot of people rent is due. This doesn’t seem right.
Senate votes on the bill tomorrow. The challenge is that they are still proposing unemployment extension and home buyer extension in the same Senate bill (house has 2 bills). Democrats cannot get the numbers to get bill approved in both branches.
“The Senate hasn’t acted yet,” said Deputy Chief of Staff Ivana Alexander in the Washington, D.C., office of Rep. Dahlkemper (D-Pa.), one of three House sponsors of the bill. “They’re expected to act and vote on the home buyer credit extension tomorrow.”
When they say entered into…..I submitted a offer prior to April 30 but still no answer from the holder..as this is a short sale. Would those entered a offer by April 30 and still close by sept 30 get the credit.. If not it just rewards the bank on thier bad behavior on doing as they please.
This has to end today or tomorrow!! lives are at stake in America!! *June 30th2010
The bill doesn’t help anyone currently shopping for a home only buyers must have signed a contact by April 30 to qualify for the tax break. Yet it leaves 1 million unemployed out in the cold. Maybe the senate should introduce a bill for unemployed to buy houses – dumb and dumber.
H.R. 5623 extends the closing date to 1 October 2010. Does the old deadline of 30 April 2010 still apply as the deadline to be under contract on a home? Would the new bill cover those who purchased homes after 30 April 2010, and close prior to 1 October 2010?
No. The April deadline still stands. The extension is only for those already under contract but couldn’t close before June 30th
please pass the bill. I live in VT and I vote
The House today failed to pass a stand-alone bill to extend unemployment insurance benefits (H.R. 5618). The final vote was 261-155. 277 votes (a 2/3rds majority of those present and voting) were needed under the suspension of the rules procedure that was used by the Democrats in order to avoid Republican obstruction tactics.
Republicans opposed the bill because it’s costs, approximately $34 billion, were not offset with new revenue. Since the financial crisis of 2008, Congress has routinely passed UI extension bills without offsets because benefit payments to help the unemployed are considered “emergency spending” and are not subject to pay-as-you-go rules.