NEWS RELEASE

Washington DC  – Legislation to extend unemployment benefits and the Homebuyer Tax  Credit program passed the U.S. House of Representatives yesterday (Thursday, Nov. 5) and is now on  its way to President Obama to be signed into law.

The bill corrects what Eighth District Congressman Jim Oberstar, DFL, calls a “gross oversight in the House bill,” by extending the unemployment benefits  for an additional 14 weeks in all 50 states, instead of limiting the  extension to the 31 states with the highest unemployment.

Minnesota narrowly  missed qualifying for the extension in the earlier legislation because the  state did not have an unemployment rate of 8.5 percent for three consecutive months.

“It was a ridiculous provision,” said Oberstar. “A worker  who is out of a job is just as unemployed and strapped for cash in a state  with 8.4 percent unemployment as a worker in a state with 8.5 percent unemployment. The benefits will provide an additional economic stimulus when  these families use their benefits to buy groceries and pay their bills.”

The bill also extends and expands the Homebuyer Tax Credit program to allow  first time homebuyers to continue receiving an $8,000 tax credit on homes  purchased until April 30, 2010. An expansion of the program will make a tax  credit of up to $6,500 available to homebuyers who have owned a home for five consecutive years and are buying a new primary residence. The qualifying  income cap will be increased from $75,000 to $125,000 for individuals and  from $150,000 to $225,000 for married couples. Homes bought for more than $800,000 would not be eligible for the credit.

“This tax credit is helping to stabilize the housing market,”  said Oberstar. “We are beginning to see the first signs of a fragile recovery and housing sales are a critical component in the overall plan to  sustain continued economic growth.”