Senate Majority Leader Harry Reid, D-Nev., and Senate Finance Committee Chairman Max Baucus, D-Mont., in the Senate are proposing a plan that would would extend the real estate $8,000 tax credit — which expires Nov. 30 — through March 31. Under their proposal its value would drop by $2,000 for each of the subsequent three quarters of 2010. The plan is a alternative proposal to the bipartisan plan that would extend the $8,000 credit through June 30, 2010, boost the income cap for eligibility and open the credit to all buyers, rather than just first-timers. Yet another proposals currently in the Senate would increase the deduction to $15,000 and open it up to home buyers with higher incomes. Proponents of both plans say the tax credit has helped revive the housing market and say that if it’s cut off as scheduled at the end of next month, home sales could drop off.
