First time homebuyer tax credit has been extended, and now includes a credit for move-up homeowners.

The Senate has unanimously voted to extend the first time homebuyers tax credit, and expand it to include many current homeowners as well. The House is expected to vote on this measure as early as this morning, and if passed, it will go to the President for his signature.

The updated tax credit will remain at a maximum of $8,000, with an added incentive of  $6,500 for move-up homeowners who have been in their current residences for five years or more. The qualifying income limits have been set at $125,000 for single taxpayers and $250,000 for joint taxpayers, and the maximum home price allowed for the credit is $800,000.

To qualify for this updated credit, a homebuyer must have an accepted purchase agreement by April 30, 2010 and complete the purchase by June 30. For military personnel deployed overseas for 90 days or more in 2008 or 209, the credit has been extended to April 30, 2011.

The measure was attached to a bill that would provide 20 weeks of unemployment benefits in states with jobless rates above 8.5 percent and up to 14 weeks elsewhere. This bill would also allow businesses with operating losses in 2008 and 2009 to request refunds for federal income taxes paid for the last five years.

Santa Clarita Realtor Linda Slocum is a Certified Distressed Property Expert (CDPE) and Certified Residential Specialist (CRS) specializing in Santa Clarita residential real estate and short sales. You can reach her at 661.670.0349 or at Linda@SantaClaritaRealEstateBlog.com. To search for Santa Clarita homes, use our neighborhood search tools or visit HoneyStartPacking.com.

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