The U.S. Senate gave approval to extending the closing deadline for the Homebuyer Tax Credit yesterday. The House previously approved the same measure and it awaits President Obama’s signature.

The measure, contained in the Homeubuyer Assistance and Improvement Act (H.R.5623), extends the deadline to close and receive the tax credit to September 30, 2010, for homes under contract on or before April 30, 2010. The effect of the measure is to extend the deadline for closing transactions eligible for the tax credit to September 30 from July 30.

For home builders and lenders the legislation provides three additional months to complete construction and paperwork for home buyers to close on the home and receive the tax credit.

NAHB, the National Association of Realtors, and other associations worked closely with Congress to extend the deadline.