Finally!  A break for those of us complaining that First Time Homebuyers are snapping up all the incentives.  Congress ultimately reasoned that it makes sense to apply stimuli elsewhere in the economy.  Hello, Move Up Home Buyers!  Those of you who have owned their current homes at least five years will now be eligible for tax credits of up to $6,500.

First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, legislation was passed to extend and expand the tax credit to include many buyers who already own homes.

Both  tax breaks, totaling more than $21 billion,  were included in a bill extending unemployment benefits for those without a job for more than a year.  In explaining the rationale for the Bill’s passage, Sen. Max Baucus, D-Mont. said, “we are still in a world of economic hurt, and Congress must continue to act boldly and creatively.  With the right mix of tax breaks and investments we will get through this recession and get folks working again.”

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible.It (the credit) would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.