Today it was announced that the US Senate finance committee had passed a measure to allow for the extension of the federal income tax credit for first time buyers, and adding a new incentive for current homeowners to make the move…

According to articles in the Philadelphia Inquirer and on Bloomberg.com, the Senate Finance Committee today approved the extension of the credit popularly attributed as a key source of the home market comeback, setting a new deadline of June 30th, 2010 for eligible buyers to go to the settlement table and receive the incentive.  In addition the income caps were raised to $125,000 and $225,000 for single and married filers, respectively.

A new element to the program would be the addition of a $6,500 (max) credit to homeowners looking to move who have claimed their current home as a primary residence for at least five continuous years.  If confirmed, this program would be a major incentive to owners looking to “trade up” to a larger home to meet family needs, etc.  In Lancaster, PA real estate sales this bloc represents a significant piece of the market year-round.

The House of Representatives have not put forward a resolution of their own at this time nor endorsed the Senate proposal.