Blog Post

Last week Governor Schwarzenegger extended and expanded the $10,000 homebuyer tax credit. The new bill, AB183, provides homebuyers with an estimated $200 million in state income tax credits starting May 1st, increasing last year’s tax credit by $100 million. The credit is equal to $10,000 or 5% of the purchase price, whichever is less and will be spread out over three years. The credit is available to anyone who buys a newly built home or to first time home buyers. To be eligible for the credit, first time home buyers can purchase a new or existing home, but existing homeowners can only purchase a newly built home. Those buying existing homes must close escrow by December 31st 2010, while new home buyers must enter a contract by December 31st 2010 and close escrow by August 1, 2011. To receive the full $10,000 credit, a homeowner must owe at least $3,333 in state income tax a year. The credit will be distributed on a “first come, first served” basis.

Via San Francisco Chronicle

Posted 30th March 2010 by Sally Forster Jones

Labels: $10000 dollar ab183 California existing homes First time home buyers governor schwarzenegger home buyer tax credit 2010 newly built homes