This vote was on an amendment by Harry Reid, D-Nev., that would extend through Sept. 30, 2010, the deadline for homebuyers to claim a first-time homebuyer tax credit.  The amendment would pay for the additional spending by eliminating a tax deduction for punitive damage judgments against businesses.  The amendment was offered to a bill that would extend several expired tax provisions, unemployment insurance benefits, Medicaid assistance to states, Medicaid doctor payment increases and other items.

Reid said this amendment is intended to ensure that homeowners whose new homes are under contract by the April 30 deadline, but which are not yet closed, can still take advantage of the new homeowners tax credit. 

“The failure to meet the June 30 deadline is not the fault of the home purchaser. Banks, title companies, and closing agents are swamped as a result of the success of this program. Many home buyers are stuck waiting for banks to make decisions on short sales. Unfortunately, the banks making these decisions feel no sense of urgency, leaving home buyers powerless to meet the current deadlines. They simply don’t care, as has been shown during this entire period of time. The banks don’t care about the home buyers or the homeowners,” Reid said. “My amendment extends the deadline for 3 months. This will give the homeowners time and the home buyers time to close their home purchases.”

John Isakson, R-Ga., said he agrees that Americans should receive what they have been promised, but that he objects to the way the amendment is paid for.  He said he will offer his own amendment to do the same thing, but would pay for it by taking the money out of an account that contains unspent funding approved by the economic stimulus law.

By a vote of 60-37, the amendment was adopted.  All but one Democrat present voted for the amendment.  Of Republicans present, four voted for the amendment and 36 voted against it.  The end result is that the measure went forward with language that would extend the time period during which first-time homebuyers can qualify for a tax credit, paid for by closing a corporate tax benefit.