Now Includes Current Homeowners …  This time around, the tax credit as been expanded to include current homeowners.  To be  eligible, homes must be under written contract by April 30th, 2010, and closed by June 30th, 2010. 

Credit Limits:  The first time home buyer’s credit will remain @ 10% of the purchase price of the home, with a maximum available tax credit of $8,000.00.  Current homeowners are eligible for a$6,500.00 credit, but the buyer must have used the home being sold as their principal residence for five of the last eight years.

Income limits:  Income limits have been increased to $225,000.00 for a married couple and $125,000.00 for a single purchaser.  For incomes above the limits, partial credits will be applied, but there is an income cap of $245,000.00 for a married couple and $145,000.00 for an individual.

Maximum Home Value:  Additionally, the maximum purchase price of the new home is now limited to  $800,000.00.  No partial credit is available if the purchase price exceeds this amount.

Payback Provisions:  The tax credit is a true credit.  It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.