The Obama administration endorsed plans to extend an $8,000 tax credit for first-time home buyers, stating that it is helping stabilize the nation’s housing market. Today, Timothy Geithner, Treasury Secretary said in a statement that the tax break has “brought new families into the housing market and contributed to three consecutive months of rising home prices,”. The tax break is set to expire December 1st 2009 unless the Congress acts to extend the credit until April 30 2010, while expanding it to include higher-income Americans and some who already own homes.
Max Baucus, Senate Finance Committee Chairman added that the new plan would offer a $6,500 credit for homebuyers who have lived in their prior residence for at least five years. Couples earning up to $225,000 and individuals up to $125,000 would qualify for the break, Baucus said. That’s up from the current $75,000 limit for individuals and $150,000 for couples.