On Wednesday, the U.S. Senate approved a plan to give buyers of Miami homes and buyers nationally an extended three months to finish qualifying for federal tax credit that boosted home sales this spring.
The move would extend the deadline to September 30th giving buyers of Miami homes time to complete their purchases and to qualify for the Federal tax credit of up to $8,000. Buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale, under the current terms.
Approved by a 60-37 vote, the new Federal tax credit plan would only apply to people who already have signed contracts to finish at the later date. About 180,000 home buyers, including those of Miami homes, who already signed purchase agreements, would otherwise miss the deadline.
Congress has been pushed the hardest for the extension by The Realtors group. The trade group says Mortgage lenders, have been flooded with buyers of Miami homes and others trying to get approved by the end of the month. However, many prospective borrowers are unlikely to make the deadline.
The Realtors said in a letter to lawmakers,``If Congress fails to act promptly, then prospective home buyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts.''
First-time buyers were eligible for a Federal tax credit of up to $8,000. Current home owners could qualify for a credit of up to $6,500 if they bought and moved into another home
Businesses would finance the $140 million cost of the measure by being died the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.
Contributed by Miami Luxury Villas
