A proposal to extend the federal government’s home buyer tax credit program has been approved by Congress. The bill now be sent to the Pres. Barack Obama for signing.

The House of Representatives approved the proposal on Tuesday while Senate followed suit the next day. If signed into law, it will extend the tax credit program’s effect up to September 30. This will give home buyers who were able to sign contracts to purchase houses by April 30 another 90 days to move to closing. Previously, the deadline for processing of contracts was set to June 30.

However, real estate agents appealed for an extension of the processing period, warning that over 180,000 buyers could be affected if the program completely closes on June 30. The National Association of Realtors said banks and settlement offices would not be able to handle the amount of sales generated by the program within the period.

Senate Majority Leader Harry Reid praised the approval of the proposal and said it will help a lot of Americans, especially his constituents. “In addition to helping thousands of families experience the American dream, this successful and popular program provides a much needed boost to Nevada’s housing market and economy,” he said. Nevada is among the states hard-hit by the foreclosure problem.

The tax credit program entitles first time home buyers up to $8,000 tax credit and those buying a new primary residence can get up to $6,500.

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