Congress today passed a bill to extend the first-time homebuyer tax credit. The credit remains capped at $8,000 but income limits are higher under the new bill. President Obama is expected to sign the bill. The bill passed unanimously in the Senate and by an overwhelming majority in the House. Under the new legislation, income limits for the credit will be raised from $75,000 to $125,000 for individuals and from $125,000 to $225,000 for couples. The maximum sales price for eligible homes is capped at $800,000. The bill extends the $8,000 first-time home buyers’ tax credit that was set to expire at the end of this month. The credit will apply to all house contracts entered into before April 30, 2010, and closed by June 30. It also creates a new $6,500 credit for existing property owners looking to sell their home and buy another during the same period of time.
