This provision would further extend and expand the First Time Home Buyer Tax Credit, which was previously extended through November 30, 2009 in February's American Recovery and Reinvestment Act and was originally enacted in the Housing and Economic Recovery Act of 2008. This extension would continue the tax credit of up to $8,000 for housing deals signed by April 30, 2010 and completed by June 30, 2010. It would also expand the credit beyond first-time homebuyers by adding a $6,500 tax credit for homebuyers seeking a new primary residence. Eligible incomes for the full credit have also been modified, rising from a $95,000 or less in yearly income for individuals to $125,000. Additional rules, restrictions, and requirements apply.

The provision was passed as part of the Worker, Homeownership, and Business Assistance Act of 2009 along with an an expansion of net operating loss carryback rules and an extension of unemployment benefits.

It would cost $13 billion through 2011, although some of this would be recovered in subsequent years resulting in a ten year cost of $11 billion. These costs would be offset -- mainly by delaying, until 2018, a rule to allow the worldwide allocation of interest for the purposes of taxation.