D.C. Dances Around Tax Credit Extension

Washington is being forced to take a hard look at the expiring $8,000 first-time homebuyer tax credit.

Nearly a dozen bills have been proposed to extend the credit past the Nov. 30 deadline, but the top decision makers are just beginning to weigh in.

On Thursday, Senate Majority Leader Harry Reid endorsed a six-month extension. Treasury Secretary Timothy Geithner said Thursday that he hasn’t made a decision yet. And the White House economic team says it will make a recommendation to President Barack Obama by the end of Friday.

Extending the credit is a tough sell in some corners because so far the credit has cost an estimated $15 billion, twice what was projected last February.

Source: The Associated Press, Adrian Sainz (09/17/2009)