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State Homebuyer Tax Credits On the Horizon
March 24th, 2010
Good news for California homebuyers! New homebuyer tax credits are on the horizon! May 1st, one day after the expiration of the federal $8,000 first-time home buyer tax credit, Californians can begin claiming $10,000 in state tax credits.
The bill, AB 183, was first proposed by Governor Schwarzenegger in his State of the State Address in January and was easily passed by both houses of the legislature. Yesterday a spokesman from the Governor’s office assured that the governor still supports the bill and will sign it into law.
The bill allocates $100 million in tax credits to first-time home buyers and an additional $100 million to buyers who purchase a new, unoccupied home. This tax credit would provide up to $3,333 off state taxes for each of the next three years. In order to qualify for the tax credit, buyers must close escrow or reserve a credit between May 1 and December 31, 2010.
If you or someone you know is interested in taking advantage of the federal tax credit before it runs out or the state tax credit once it’s in effect, please give me a call. I love referrals and I would love to help you find the home of your dreams!
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Thanks for showing me around yesterday! What exactly qualifies as a “new” home buyer? Since I purchased the home that I am currently living in back in 2005, I wouldn’t qualify would I?
Charles,
It’s not clear yet how the California state tax credit program will work, it says that first time home buyer’s will be eligible and any buyer purchasing any new “unoccupied” home. Sounds to me like the only tax credit available to you would be the $6,500 move up federal tax credit, to be eligible for that credit you must be in contract by April 30th, and close escrow by June 30th.
Chris is right on. You don’t qualify as a new homebuyer and at this point, the term “unoccupied home” seem to be defined as new construtction. If you’re looking to buy soon, the $6,500 move up federal tax credit is a great option.
Thanks Chris for your prompt response. That’s why he’s one of my preferred lenders!