The bill extends the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, 2010 provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1, 2010 to close the transaction.

Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Click here for detailed information about provisions in the tax credit legislation.

The new trend in building new homes is smaller and more modest for the first time home buyers and empty nesters. The National Association of Home Builders says

After a long run-up in median new home size, peaking at 2,309 square feet in 2007,home sizes shrank to 2,091 square feet in 2009. “It’s the largest decline ever seen,” said NAHB’s chief economist David Crowe.

After this recession, home building has been fundamentally changed forever.