710 Hawaii Homebuyers could benefit if exemption is extended

U.S. Representative Mazie Hirono of Hawaii today voted in support of legislation that extends by three months the required closing date for a federal homebuyer tax credit for homes purchased through April 30, 2010.  The Homebuyers Assistance and Improvement Act, H.R. 5623, aims to provide taxpayers who purchased a home by April 30 a closing deadline of October 1, 2010.  Under current law, closings must occur by June 30.  The U.S. House passed the legislation by a majority vote of 409 yeas to 5 nays.

According to the National Association of Realtors, the closing of an estimated 710 home sales in the State of Hawaii will be delayed beyond the June 30 deadline.

“This bill would provide relief to new homeowners in Hawaii who, through no fault of their own, are about to watch a substantial tax credit slip through their fingers,” said Congresswoman Hirono. “Purchasing a home is a time consuming process that has its share of typical delays. Once signed into law, this legislation will provide new homebuyers the tax credit they’re entitled to, beyond the original June 30 deadline.”

H.R. 5623 extends the tax credit of up to $8,000 for qualified first-time home buyers, as well as a credit of up to $6,500 for repeat buyers purchasing a principal residence.

The Homebuyers Assistance and Improvement Act now goes before the U.S. Senate for consideration.