$18,000 Fed & State Tax Credits if you buy in April?

Governor signs home STATE tax credit bill. (May be combined with Federal)

Governor Schwarzenegger signed AB 183 providing $200 million for home buyer tax credits.

Eligible taxpayers who close escrow on qualified principal residences between May 1, 2010 and December, 31, 2010, or who close escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit. This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state). Buyers also must be at least 18 years old and be unrelated to the seller. First-time buyers are defined as those who have not owned a home in the past three years.

The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

http://www.car.org/governmentaffairs/stategovernmentaffairs/homebuyertaxcredit/

I put together a great chart showing all the details of this State Tax Credit and how it can be combined with the current Federal Tax Credit.  It makes it easy to understand.  Let me know if you would like me to email you a copy.

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