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Schwarzenegger Signs new $10,000 California Homebuyer Tax Credit into Law!

By Mike in Downtown San Diego Urban Lifestyle|March 2010 with 0 Comments

Schwarzenegger Signs new $10,000 California Homebuyer Tax Credit into Law!The California Association of Realtors reported Friday March 26th, 2010 that Governor Schwarzenegger signed the assembly bill 183 for the Homebuyer Tax Credit legislation, into law.

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.

Schwarzenegger proposed the housing stimulus in his January State of the State Address to help revive the California economy. The new state tax credit would take effect one day after expiration of a federal $8,000 tax credit for first time homebuyers including home buyers of Downtown San Diego Condos and Downtown San Diego Lofts.

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 Condo, Loft or 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.

To read more about the new law visit The State of California.

To read 92101 Urban Living’s former blogs click on Tax Credit for New Home Purchase in Downtown San Diego and New Updates in Effect to FHA Financing for Condos & Lofts in Downtown San Diego! ')}