California home buyer tax credit takes effect

California_Tax_creditJust as one government homebuyer tax credit program ends (Federal), another begins. The homebuyer tax credit signed into law in March by Gov. Arnold Schwarzenegger became effective May 1st.

Assembly Bill 183 established a tax credit of $10,000 or 5 percent of the purchase price  of a newly built home and a $10,000 tax credit for first-time purchasers of existing homes. The credit (spread over 3 years) is good through Dec. 31, or until funding is exhausted, whichever comes first.

The $200 million allocated for the program is split evenly, with $100 million going to purchasers of new homes and $100 million to first-time buyers of existing homes.

Did you read what I put in BOLD?  On Friday, May 7th, I had a meeting with Gov Hutchinson who announced that the program was about to end.  In his estimation, there was about another week or two of funding left – at the max!  Because Realtors are not allowed to give tax information/advice, please click on the link below to see where you might stand in applying for this credit.

http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

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