In less than two months, the $8,000 tax credit available to first-time homebuyers is set to expire. Economists and housing experts have widely applauded this program as one of the driving forces sending purchasers hustling back into the market. President Barack Obama‘s administration is considering renewing it. Several senators have supported a measure to extend the credit for six months, and now Bloomberg is reporting that much of Congress seems to be on board.
Extending the tax credit for homebuyers is “under consideration,” [Speaker Nancy Pelosi], a California Democrat, told reporters today in Washington. “The question is, would that be just first-time homeowners or would you open it up to other purchasers of homes?”
“There’s no question that I think it should be extended; for how long, we should discuss,” said House Ways and Means Committee Chairman Charles Rangel, a New York Democrat. He said the tax credit shouldn’t be made permanent.
Georgia Senator Johnny Isakson introduced a bill last June expanding the tax credit to $15,000, and making it available to all homebuyers. As it stand, “the homebuyer credit would cost the government about $1 billion for each month it is extended,” according to Bloomberg.