March 26, 2010

Good news for California: Governor signs Homeowner Tax Credit

Posted to Kathy Mardiros, Real Estate Tips

Yesterday Gov. Arnold Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit, into law. This legislation provides $200 million for home buyer tax credits - $100 million for first time buyers of existing homes and $100 million for new or previously unoccupied homes. See the press release here.

The credit is equal to the lesser of 5% of the purchase price to a maximum of $10,000. The credit is in equal installments over three consecutive years. The buyer must live in the home for at least two years or pay back the state for the credit.

The state’s previous home buyer tax credit ran out of tax credits by the end of June 2009 – long before it was due to expire. The previous tax credit only applied to new construction where as the new legislation includes existing homes.

The goal of the tax credit is to stimulate the California economy by helping first time home buyers purchase a home. It is hoped some of the homes currently sitting in inventory will be purchased and if necessary renovated helping stimulate jobs as trades people are hired to do the work.

If you would like a referral to a real estate agent who can help you find a property to purchase, give me a call at 925-287-0550 or email me at kmardiros@legacyrealestateassociates.com.

Posted by:Kathy Mardiros