California Home Buyer Tax Credit - Good News For California

Governor Schwarzenegger signed Assembly Bill 183,whichever is less. Additional requirements in order to
the Home Buyer Tax Credit legislation, into law today.be eligible for the credit include the fact that buyers
This is a law that will allow for approximately $200MUST live in the home for at least two years. If this
million for home buyer tax credits. Of this $200 million,last requirement is not met, the credit will be forfeited,
about half will be set aside for first-time home buyersand any portion previously claimed will immediately be
who qualify and purchase existing homes. The otherdue, payable to the state.
half will be set aside for qualified buyers who purchaseHistorically, programs such as this one have led to a
new, or previously unoccupied, homes.positive increase in home purchases. Many buyers
Under this program, eligible taxpayers purchasingdescribe themselves as being more willing to purchase
personal residence and who qualify for the credit musta home when they know they are eligible for a tax
purchase the property between May 1, 2010, and Dec.credit. A prime example of the impact of credits on
31, 2010, unless they purchase the property after Dec.the housing market can be seen by the impact the
31, 2010, and before Aug. 1, 2011, but have anFederal credit has had on the housing market.
enforceable contract executed on or before Dec. 31,Industry professionals are hoping that this state tax
2010, will be the individuals who will be allowed to takecredit will result in just the push that the housing market
the tax credit.in California needs to stimulate sales, motivate
The amount of the credit is equal to the either 5rehabilitation and create employment for construction
percent of the purchase price or $10,000 ( taken inand contractor-related jobs.
equal installments over three consecutive years);