27 October ? The stock market fell off yesterday due to anticipation of the first-time home buyer tax credit coming to an end on December 1st, 2009. There is a glimmer of hope on extending this tax credit. Senate majority leader Senator Harry Reid has proposed to slowly phase out the tax credit by extending it until March, 2010. Under the plan, starting April 2010 the tax credit would be reduced to $6,000 through the end of June. July 2010 the tax credit would be reduced to $4,000 and again in October to $2,000 and by the end of 2010, no more tax credits.

Georgia Republican Senator J. Isakson has proposed extending the tax credit through June 2010. Not only is he proposing this extension, he has has proposed opening up the tax credit to all buyers, not just first time home buyers. He has also proposed to bump the salary limitations from $150,000 to $300,000.

Both proposals would obviously extend the tax credit. Therefore all hope is not lost.