Help me understand what this means?

[Mike Jones]

So this recent news sent to my email from BP with a link to:
http://www.biggerpockets.com/renewsblog/2013/01/01/fiscal-cliff-real-estate/

Says:
Additionally, the passed bill included an extension to keep tax-free the sale of a primary residence for American homeowners who profit $250,000 or less ($500,000 for married couples) from the sale of their home. This extension is also only available for those earning under $450,000 per year in income.

Does this mean a house I bought as my primary which I am preparing to sell and expecting to make less than $250k profit wont be subjected to taxes at all??

Or wouldn't I need to do a 1031 on this? What's the catch?

Thanks!

--Mike