Monday, June 21, 2010

Housing Tax Credit Extension Update

by Calculated Risk on 6/21/2010 11:30:00 AM

David Rosenberg, chief economist at Gluskin Sheff + Associates, wrote this morning:

"We heard from Ivy Zelman (top-rated real estate research) on Friday that the bill that included an extension for the closing date of the homebuyer tax credit fell two votes short of passing in the Senate. This virtually assures that it will not become law prior to the June 30th deadline. Ivy says that while it is difficult to quantify the impact, the fact that as of yet there is no extension, which was widely expected in this bailout nation, it could trigger a jump in cancellations beginning in July if a sizeable number of sales are not closed in time."
Rosenberg is referring to H.R.4213 the "American Jobs and Closing Tax Loopholes Act of 2010".

The amendment (S.AMDT.4344) to extend the closing date for the tax credit passed last week on a vote of 60 to 37.

The Senate is still debating the other tax extenders, and was unable to obtain cloture (this is what Zelman was referring to). This bill also includes the extension of the date (not duration) of unemployment benefits and other provisions. One of the sticking points is the extension of the COBRA benefit.