With a 98 to 0 vote, the senate voted to extend the first time homebuyer tax credit yesterday.  Moreover, the vote also calls for an expansion of the credit to current homeowners.

The details:

The current first time homebuyer tax credit is set to expire November 30, 2009.  This means that a closing must take place by this date.  In other words, the current credit is over.  Today’s the 5th of November.  With Thanksgiving just around the corner, it would be hard to put a home under contract today and confidently expect it to close before December.  It can be done, but it’s not a guarantee.

The extension calls for a credit to be given for all contracts written by April 30, 2010 and closed by June 30, 2010.  I’m not sure how that will be monitored if it goes in to effect.  In other words, I’m not sure how you could stop a buyer from back-dating a contract — we’ll just have to see.

Regarding expansion, the new credit — if passed — would allow existing home owners who have lived in their current home for 5 years or more to take a $6500 credit if they buy a new home.

Also, the Senate bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

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