Senate Passes 90-Day Extension of Home Buyer Tax Credit Closing Date, FAA Tax Rate Extension

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The Senate June 30 passed a 90-day extension of the closing deadline for the home buyer tax credit in an effort to keep qualified buyers from losing their ability to claim credits worth up to $8,000. The credit is available to home buyers who entered into a written contract by April 30, but lawmakers said the June 30 deadline for settlements on those purchases was impossible to meet for several buyers because of paperwork delays caused by a backlog at lenders and with the federal programs involved. Supporters of the extension also pointed to the high number of homes being bought through the foreclosure or short-sale process, which can take longer to complete than typical home sales.