Congress has singled-out homebuyer credit extension relief and approved it in a last-minute move before adjourning for the July 4th holiday. The Homebuyer Assistance and Improvement Act of 2010 extends the closing date deadline from June 30, 2010 to September 30, 2010.
What does this mean for your clients? The Act enables homebuyers who signed sales contracts prior to May 1, 2010, to be able to take advantage of the homebuyer tax credit so long as they close on their home by September 30, 2010. This high-profile legislation will enable an estimated 180,000 additional homebuyers to utilize the tax credit and not be penalized by delays within the financial sector that may have caused many to miss the original June 30th closing deadline.
To pay for this relief, Congress has enacted several revenue-raising provisions:
- A delay in the transfer of Travel Promotion Board Fees
- Clarification of the bad check penalty for electronic payments
- Return-disclosure authorization to prevent homebuyer credit fraud among State prison inmates
Congress has also passed a number of other small tax code changes recently, including:
- The so-called Medicare "doc fix", which reverses a 21% cut in Medicare physician reimbursements that took effect June 1, 2010
- Pension funding relief measures that are intended to give sponsors of defined plans additional time to amortize pension funding shortfalls
- An extension of the airline ticket tax and aviation fuels tax through August 1, 2010