Last Friday saw the signing into law of the much-anticipated extension to the First-Time Homebuyer Tax Credit, called The Worker, Homeownership, and Business Assistance Act of 2009.

I’ll summarize the other areas in a separate post.

On the First-Time Homebuyer front, this bill extends the original First-Time Homebuyer Credit  through April 30, 2010.  The original legislation for 2009 required that homes be purchased by November 30 of this year.  Furthermore, current homeowners who’ve owned their homes for more than five years may now be eligible for up to $6,500 if they opt to buy a new home.  Originally, the full credit was unavailable for individuals earning more than $75,000 and couples earning more than $150,000.  Those limits have been increased to $125,000 and $225,000.  The credit phases out as incomes approach $145,000 and $245,000.

Note that the new provisions are in effect for homes purchased between November 7, 2009 and April 30, 2010.  As long as a binding contract is in place by April 30, buyers will have until July 1 to close.

Homes that cost more than $800,000 are not eligible for the credit.  Given the income limitations, this is not likely to be a common problem.