California Expands $10K Buyer Tax Credit

The state of California has re-established and extended a $10,000 homebuyer tax credit.

The new law, AB 183,  was passed by the legislature on March 22 and gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers; $100 million for buyers of new, unoccupied homes and another $100 million for first-time buyers of existing homes. The credit will be extended from May 1, 2010 to December 31, 2010, and between Dec. 31, 2010 and August 1, 2011. The tax credit will be available to buyers on a first-come, first-served basis and is applied in equal amounts over a period of three taxable years. To qualify, the buyer must not be a dependant and must purchase a home that does not belong to a relative.

Read Governor Schwarzenegger’s press release on signing the $10,000 Homebuyer Tax Credit Legislation.