Senate approves extension of homebuyer credit

WASHINGTON — The Senate approved a $45 billion plan Wednesday to expand a tax credit for first-time homebuyers. 

Under the bill, the $8,000 homebuyers' tax credit, slated to expire this month, would continue until April 30 and be expanded to include people with higher incomes and some who already own homes.

The Senate plan would allow homebuyers who have lived in their residence at least five years to receive a $6,500 credit. Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify. That is up from the current $75,000 limit for individuals and $150,000 for couples.

Those buying homes worth more than $800,000 wouldn't be eligible for the credit, and those who sell their new home or stop using it as their main residence within three years would have to repay the credit.

Courtesy of Bloomberg News and The Associated Press