Tag Archives: California Homebuyer Tax Credit

The California homebuyer tax credit is about to make an exit

It hasn’t been in the news much, but since May 1 California has been offering a second round of its own homebuyer tax credit.  Roger Showley of the U-T recently contacted state spokeswoman Brenda Voet, who said that there have been approximately 3,000 applicants per week.  She had projected that the $100 million set aside for the tax credit would be gone by July 1.  As of this writing, it is still available.

Regarding who qualifies, “…a buyer must close escrow between May 1 (2010) and Jan 1 (2011) and cannot have owned a principal residence for at least three years.  The credits are awarded on a first-come, first-served basis to those who have closed escrow.”  Also, “This year, a second $100 million program is available to both first-timers and move-up buyers who purchase a newly built home as a principal residence.  Credits may be reserved when buyers sign a purchase contract and then redeemed upon close of escrow before August 1, 2011.” 

As far as a dollar figure for the tax credit, “For both programs the maximum credit is $10,000 or 5 percent of the purchase price, whichever is less.”

California picks up (kind of) where the Feds left off

Ok, it looks like there will be no extension of the federal homebuyer tax credit, BUT mark your calendars.  Beginning May 1, California will be offering a $10,000 homebuying tax credit.

Jonas Kruckenberg wrote a great article at Wannanetwork.com on all of the highlights.

This program would apply to any taxpayer buying a new home and a first-time homebuyer buying an existing or new home.  The purchase must be a “qualified principal residence”.  $200 million of state money has been set aside for this program and it is based on a first come, first serve basis.

This program may help up to 20,000 homebuyers.  Check out the full article at the above link.