The credit is now available for a home purchase contract entered into April 30, 2010. The closing must be no later than June 30th.

Now, the government has added a nice treat. Yes, it is possible for existing homeowners to get a credit for $6,500 or 10% of the value of the house, whichever is greater.

First, you must have lived in your home for five of the past eight years (and it must be the principal residence). Next, there are income limits. They are $125,000 for single filers and $225,000 for joint filers (this applies to first-time homeowners as well). However, beyond these amounts, the credit will be gradually phased out (with the elimination at $145,000 for single filers and $245,000 for joint filers).

To get the credit, you can include it on your 2009 return or file an amended 2009 return. You can even file it under a 2010 return (filed on or before April 15, 2011). You will also need to attach documentation of the home purchase (keep in mind that there appears to be a good amount of fraud with the program).

All in all, this expanded tax credit has lots of support, getting 403 votes in the House and 98 votes in the Senate. Of course, the sentiment is that this will spur more activity in real estate (which it probably will). But, given the expansion of the credit, the cost will not be cheap -- estimated at $11 billion.

Tom Taulli provides a variety of financial services to business owners, such as business plans, cash flow management, and taxes. You can reach him at taulli.com.