Congress added to the program the  “Move-Up” Buyers Program.  To be a “move-up” buyer  you had to have lived in your home for 5 of the last 8 years. Move-up buyers are capped at a total tax credit of $6,500.

Eligibility for either program is pretty simple:

• You can not purchase the home from a parent, spouse, or child
• You can not purchase the home from an entity in which they’re a majority owner (corporation)
• You can not acquire the home by gift or inheritance
• All parties to the purchase must meet eligibility requirements
• The property’s sales price may not exceed $800,000.
• Household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.

The program is a true tax credit — not a deduction. This means that a tax filer who’s eligible for the full $8,000 credit and whose “normal” tax liability totals $6,000 would receive a $2,000 refund from the U.S. Treasury at tax time.  You can search for a home of your dreams and receive a substantial tax credit.

The complete list of qualifying criteria is posted on the IRS website.  Review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.  It’s a great time to buy.