Builders Rush to Meet Tax Credit Deadline

Builders are rushing to finish homes so that buyers can close on them before the June 30 deadline to qualify for a federal tax credit.

To close on a sale, builders in most parts of the U.S. must obtain a certificate of occupancy that attests that the home is finished and conforms to building codes. Also, mortgage lenders usually require that document to close.

To make the deadline, builders are hiring. The jobless rate in the construction industry fell to 20 percent in May from a high of 27 percent in February, according to the Bureau of Labor Statistics.

Source: Bloomberg, Kathleen M. Howley (06/11/2010)