Senate Majority Leader Harry Reid (D-NV) co-authored a proposal that would allow home buyers hoping to take advantage of the homebuyer tax credit, which expired on April 30th, three extra months to close on their home purchases.

To currently qualify for the tax credit buyers must have signed a contract by April 30th and closed on their transaction by June 30th. Senator Reid’s proposal moves the deadline for closing transactions to September 30, 2010. The tax credit was designed to help revive the struggling housing market. The amendment is attached to the Senate’s tax extenders bill which has been bottled up in the upper chamber for the past month. (See article above on “Important Tax “Extender” Bill Collapses in Senate)

MHI is part of a broad coalition that is supporting the extension of the credit, as well as “monetization” which would convert the tax credit to down payment assistance. Staff will monitor this issue and keep members apprised of any new developments.

MHI members can contact Rae Ann Bevington at rbevington@mfghome.org.