Oct. 13, 2009 - House bill would extend tax credit for some

First-time homebuyers serving overseas in the military get help

The House of Representatives has voted to extend the popular $8000 first time home buyers tax credit to military personnel who are currently serving overseas.

H.R. 2562 amends the Internal Revenue Code of 1986 to extend the $8,000 first-time homebuyer credit for one year for members of the Armed Services of the United States serving outside the United States at least 90 days during 2009.  

The bill would also prohibit the IRS from "recapturing" the $8,000 credit when service members are forced to sell or rent out their houses because they are ordered to deploy to a different duty station, overseas or inside the country.  Currently, buyers who obtain the credit must use their houses as a principal residence for 36 months or repay the credit to the IRS.

From here, the action now moves to the U.S. Senate, which must also pass the measure before the bill can be signed by the president. Aside from other qualifying requirements, first time buyers must close on the home purchase before midnight December 1, 2009.  To read more click here