Senate Banking Committee Chairman Chris Dodd on Tuesday endorsed extending and expanding a first-time homebuyer tax credit that was included in the economic stimulus package but is due to expire next month.
The Connecticut Democrat was joined by Sen. Johnny Isakson, R-Ga., who testified at a committee hearing Tuesday that the $8,000 first-time homebuyer tax credit should be continued through June and broadened to more homebuyers.
"The credit is set to expire in five weeks. But the work of stabilizing the housing market won't be done," Sen. Dodd said at the hearing.
"We still need to use every tool at our disposal to try and fix this problem."
Dodd added that reducing foreclosures needs to be a part of any housing recovery effort.
"The utility of the homebuyer tax credit will be maximized only if it operates in tandem with an effective program to protect struggling homeowners from foreclosure as well."