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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!