The tax credit is extended through April 30, 2010, with a 60 day extension if a binding contract is in place prior to the deadline.  First-time home buyers (have not owned a home in the past 3 years) will continue to receive a tax credit of up to $8,000.00, while existing homeowners will receive a reduced credit of $6,500.00.  Existing homeowners will be eligible for the credit if they have lived in their current home for at least 5 years and are buying a replacement home.  The bill also increased the qualifying annual income limits from $75,000 for single tax filers to $125,000, and for joint filers from $150,000 to $225,000.  The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns.  The bill maintains the provision that home buyers do not have to repay the credit,  provided the home remains their primary residence for 36 mths after purchase  and waives this requirement for active duty military personnel who move due to a military order.

For more info regarding the tax credit go to www.irs.gov