The Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. Under the new law, an eligible taxpayer must buy or enter into a binding contract to buy a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.

To qualify for the credit the property must be purchased and closed upon by the specified dates and the buyers modified adjusted gross income (MAGI) for an individual must not exceed $125,000 and for a couple it must not exceed $250,000.  A new benefit with this extension is the abiltiy, for existing home owners who want to replace their primary home, to receive a tax credit up to $6,500.