WAFF.com: North Alabama News, Radar, Weather, Sports and Jobs-First-time home buyer tax credit may get extension

First-time home buyer tax credit may get extension

By Margo Gray - bio | email

HUNTSVILLE, AL (WAFF) - Talk on Capitol Hill may continue to breath new life into the struggling housing market by extending the first-time homebuyers tax credit till next year.

The deadline for the tax credit to run out is fast approaching, but supporters say an extension would mean continued success in a shaky housing market.

Couple, Wesley Dobbs and Rainey Day, are two weeks away from closing on a townhome in Southeast Huntsville.

After looking for almost a year, they found the right fit and the benefit has been the first time home buyer tax credit. "We'll be thrilled to actually feel like we are going somewhere, we have a future and a plan with a new home."

Their success story of home ownership is one on a list of many Realtor Dena Hoekenschnieder has made happen. She said 50% of her sales in the past few months have been first time home buyers; but with the tax credit set to expire at the end of November, Hoekenschnieder is hoping congress will act fast to extend it.

Senate leaders on Capitol Hill have reached a tentative deal to extend the credit till the end of April 2010 and they could expand it to current homeowners.

Critics say the tax credit is only putting a costly band-aid on the issue and with every benefit, comes a cost. University of Alabama Huntsville Finance Professor John Burnett weighs in, "if there was no tax credit, tax revenues would be high but now with this tax credit, tax revenues are going to be much lower."

The tax credit extension has received support from both republicans and democrats but the measure still has not come to a vote.

©2009 WAFF. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.