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California Re-Established & Extended $10,000 Homebuyer Tax Credit!

The Law: 

AB 183, signed by Gov. Arnold Schwarzenegger,

allocates $200 million to the credit for homes purchased between May 1 and Dec. 31, and between Dec. 31 and August 1, 2011. That's twice the amount allocated to a similar credit passed for purchasers of new homes last year. Those funds were quickly depleted and builders have been asking for the credit's return ever since.

California has extended the $10,000 Homebuyer Tax Credit to first-time buyers of existing homes as well as buyers of new homes. *The funds will be split evenly between the two groups, and buyers will have to occupy the home for at least two years.  This legislation is backed by the California Building Industry Association and the California Association of Realtors.

The credit will be paid out over several years and therefore lessen the blow to the cash-strapped state's budget.

 

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