The Governator has signed the California Home Buyer Tax Credit

By
Real Estate Agent with Better Homes & Gardens Real Estate

It's been a whirlwind day in the state Capitol, but it ends with Gov. Arnold Schwarzenegger signing a bill to allocate $200 million for state home buyer tax credits. That's expected to affect 32,000 California home buyers in coming months - and comes just as a federal $8,000 tax credit is about to expire.

Bullet Points for the new Tax Credit:

  • The legislation allocates $200 million for more state tax credits - twice what was offered last year to 10,659 buyers of new, unoccupied homes. The state's newest housing stimulus will grant $100 million in tax credits to first-time buyers of existing homes and $100 million to anyone who buys a new, unoccupied home.
  • The state Franchise Tax Board on Tuesday estimated nearly 32,000 homeowners statewide might get the tax breaks. Buyers must close escrow or reserve a credit on or after May 1 and before or on Dec. 31 to qualify.
  • As was the case last year, buyers won't be eligible for the full $10,000 credit if they owe the state less than that amount over a three-year period. Buyers can get up to $3,333 off their tax obligation in each of the three years after buying a house.
  • Buyers must be at least 18 years old and be unrelated to the seller. They must live in the home they buy. First-time buyers are defined as those who have not owned a home in the past three years.
  • This year's legislation is different in that it allows buyers of new homes to reserve a tax credit in advance. A buyer signing a sales contract in June can claim the credit in November when the house is completed

clear skies,

_doug reynolds

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Topic:
Home Buying
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Rainer
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Dawn Pfaff
NYStateMLS

Isn't California BROKE? I thought they couldn't even send people their refunds.

March 25, 2010 07:44 PM
Rainmaker
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Doug Reynolds
Realtor - Sacramento, CA
Better Homes & Gardens Real Estate

haha, good question Dawn.  Not quite sure where the money is going to come from but apparently our politicians feel it will raise additional revenue with more home sales.  I'm sure Home Depot and Lowe's are happy.

March 26, 2010 04:55 PM
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Rainmaker
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Doug Reynolds

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