Unlike the previous tax credit Congress passed in July of 2008 which provided up to $8,000 to ONLY first time home buyers, the newly revised version also contains a provision for MOVE-UP or REPEAT home buyers as well.

Now, under the new provisions, home buyers that qualify as “long term residents”, or put simply, someone who has lived in the same house for at least five straight years in the last eight year period, is eligible for a tax credit of up to $6,500 when they purchase a new or different primary residence. For married couples, BOTH must qualify as long term residents in order to take advantage of the tax credit.

This tax credit is limited to 10% of the home’s purchase price up to a maximum of $6,500. Thus on a qualifying home priced at $50,000 the buyer would receive a tax credit of $5,000. Qualifying homes can be any of the following: a single-family residence, a town home or a condominium. Even mobile homes and houseboats qualify!

The Home Buyer Tax Credit is reduced for buyers with incomes above a certain amount. Single taxpayers who earn over $125,000 per year, and married taxpayers (filing jointly) who earn over $225,000 a year combined, will see a proportional reduction in the amount of the credit they can receive.

Repeat buyers have until April 30th 2010 to sign purchase agreements, and until June 30th 2010 to close on their new homes. Also, you can choose whether to apply your tax credit to 2009 or 2010 based on which choice would offer you a greater tax benefit.