The 6,500 dollar tax credit for home owners who are "trading up" is getting closer scrutiny. The government has not forgotten current homeowners in its extension of the federal housing credit. The latest version of the plan allows folks who already own a primary residence the option of utilizing a $6,500 tax credit -- as opposed to the $8,000 credit that is only for first-time buyers -- towards the purchase of another home. This new 6,500 dollar tax credit for home owners is a great incentive to change your primary residence, if you were already considering it.

But are you eligible to receive the $6,500 tax credit for home buyers? Check your status against these criteria amassed by The Washington Post:

-[Y]ou've owned and resided in your current home for a consecutive five out of the past eight years, and your adjusted household income doesn't exceed $125,000 if you file taxes singly, $225,000 if you are married filing jointly.

-Whatever you intend to purchase, the home cannot cost more than $800,000.

-The replacement home must become your main residence. There is no requirement in the legislation that you sell your current home.

-Like the first-time-buyer credit, the $6,500 version permits a broad range of dwelling types for your purchase. These include newly constructed or existing single-family homes, condominiums, manufactured or mobile homes, and boats that function as your principal residence.

-Home buyers who go to closing between Nov. 6 and Dec. 31 can claim the $6,500 credit on their 2009 federal tax returns or amend their 2008 returns.

If you were planning to change your primary residence anyway, and can close by the June 30, 2010 expiration date, why not take the free 6,500 bucks? The financial benefits of this federal housing tax credit are legion, as you can save money by downgrading to a cheaper home, and/or use your original property to generate rental income.

Learn more about the 6,500 dollar tax credit for home buyers on the official Web site of the federal government.