California Home Buyer Tax Credits - First-Time Homebuyers, New Home Purchase

New Bill Extends California's Tax Credit for New Home Purchases, Expands to Include Existing Homes Purchased by First-Time Homebuyers

Yesterday, the California State Legislature passed Assembly Bill 183 (AB 183) and sent it to the Governor's office, where it is currently awaiting his signature.  AB 183 establishes a California tax credit for 2010 similar to the one enacted for 2009.  The bill allocates $200 million ($100 million for new home purchases, $100 million for first-time homebuyers) to establish tax credits of up to $10,000 (or 5 percent of the purchase price of the home, whichever is less) for California taxpayers who are either first-time homebuyers or who purchase a new (never occupied) home in California between May 1, 2010 and December 31, 2010.  If claimed, the credit will be applied as three equal credits to a taxpayer's personal income tax returns over a three-year period (up to $3,333.33 per year).

The Governor is expected to sign the bill, which would establish both the new home purchase tax credit and the first-time homebuyer tax credit for qualifying home purchases made in 2010.  Please visit the Dream Team's California Home Buyer Tax Credit page for updates on the Governor's signing of the bill and additional details on the tax credit as they become available.

3/26/2010 Update: As expected, Governor Schwarzenegger signed AB 183 yesterday afternoon, officially establishing the two tax credits as law.