The bill, approved unanimously by the Senate late Wednesday and signed by President Obama Friday, November 6, extends unemployment benefits for up to 20 weeks.
It also keeps a first-time home buyer tax credit alive until next spring, and expands it to include some people who already own a house.
The bill extends jobless benefits in all states for 14 weeks, and for up to 20 weeks in states where the unemployment rate is above 8.5%.
The $8,000 tax credit for first-time home buyers that was set to expire this month is now extended through April 30.
Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time home buyers – or people who haven’t owned homes in the previous three years – could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1, 2010.
The credit is available for the purchase of principal homes costing $800,000 or less. Vacation homes and investment properties are ineligible. The credit will be phased out for individuals with annual incomes above $125,000 and joint filers with incomes above $225,000.
The credit extends for an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
Extending and expanding the program is expected to cost the government about $10.8 billion in lost taxes.
Through August of this year, about 1.4 million people nationwide had taken advantage of the tax credit, accounting for about 40 percent of all purchases, according to estimates by the National Association of Realtors and the National Association of Home Builders.
Home buyers can claim the tax credit on purchases completed in 2010 on their 2009 income tax returns. If the credit exceeds their tax bill, the government will issue a check. Home buyers do not have to repay the credit, provided they live in the home as their primary residence for 36 months after purchase.
