While Congress was extending unemployment benefits, it also made a number of important changes affecting certain individuals and businesses. The Worker, Homeownership, and Business Assistance Act of 2009, which was passed by the Senate on Nov. 4 and the House on Nov. 5, and signed into law on Nov. 6, 2009, will extend unemployment benefits by 20 weeks in states hardest hit by the tough economy and by 14 weeks in all other states. The important points to note with respect to some of the tax-related changes in the new law are the effective dates, the expiration dates, and limits on eligibility.
Homebuyer Credit
Until now, only first-time homebuyers were eligible to claim a refundable tax credit for buying a home (Code §36). The credit is 10 percent of the cost of the home, up to a maximum of $8,000 ($4,000 for married persons filing separately). That credit had been set to expire on Nov. 30. The new law extends the credit through April 30, 2010. Also, anyone with a home in contract on that date can qualify for the credit if the sale closes by June 30, 2010. The new law not only extends the expiration date for the credit; it expands it in several significant ways. It does not, however, change the requirement that the home must be a principal residence; the credit does not apply to the purchase of vacation property.
