Senate Passes Homebuyer Credit and NOL Carryback Extension

On November 4, 2009, the Senate passed the Worker, Homeownership, and Business Assistance Bill of 2009 (H.R. 3548) by a vote of 98 to 0. Besides an extension of unemployment benefits, the legislation includes an extension and expansion of the homebuyer credit and an extension and expansion of the five-year carryback of net operating losses. To pay for these provisions, the legislation includes a delay in the application of worldwide allocation of interest, an increase in the penalties for failure to file partnership and S corporation returns, and an acceleration of corporate estimated tax payments. The legislation also expands the requirement for electronic filing by return preparers. The House is expected to take up the legislation this week.