New California $10,000 Tax Credit!
Despite being in a seemingly insurmountable deficit, the great state of California has signed a new bill into law to allocate $200,000,000 new dollars toward aCalifornia tax credit for first time home buyers and new construction home.
This California tax credit will be for up to $10,000 for people that close escrow after May 1st of this year. If timed correctly, California home buyers will even be able to double up the California tax credit with the $8,000 federal tax credit for a whopping $18,000 on contracts that are signed by April 30th and close by June 30th.
Something to take note of is that the new California tax credit is for a set amount of money, in this case $200,000,000. Of that money, $100,000,000 is earmarked for first time home buyers and the other $100,000,000 is set aside for buyers of new construction. When this money has been exhausted that will be the end of the program. The first come first serve structure is intended to have the effect of creating urgency, which should provide a jolt to the California housing market.
Really, this is an extension of a $100 million California tax credit that was sign into law on February 2009, but ran out of funds after more than 10,000 home buyers claimed the credit in only four months.
If you are like most California home buyers, you probably did not even find out about that credit. It just kind of came and went without much publicity. This time I want to make sure you are aware so that you can take advantage of the program if it is right for you.