Congress Extends Credit for First-Time Home Buyers

The House voted to extend and expand an $8,000 tax credit for first-time home buyers as part of a stimulus expansion expected to inject $45 billion into the economy. The legislation, which passed the Senate yesterday, also extends unemployment benefits for 20 weeks and creates tax breaks for businesses suffering losses. President Obama will sign it tomorrow. The House voted 403-12, with Republicans accounting for all the “no” votes.

The home buyers' credit, set to expire Nov. 30, will now last until April 30, and more Americans are now eligible: The bill raises the yearly income limit to $225,000 for couples and $125,000 for individuals, up from $150,000 and $75,000, respectively. About 1.4 million people have claimed the credit at a cost so far of about $10 billion, Bloomberg reports.