On November 6, 2009, legislation was passed which extended and increased the homebuyer credits. Up to $8000 refundable credit now applies to eligible taxpayers that have purchased, or entered into a binding contract to buy, a principal residence on or before April 30, 2010, and close by June 30, 2010. This credit can be claimed on either the 2009 or the 2010 tax return. Long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6500. They must have lived in the same principal residence for any five consecutive year period during the eight year period that ended on the date the replacement home is purchased. Income limits have changed for these credits! The new law raises the income limits for homes purchased after November 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The previous phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before November 6, 2009.