Current Buyer Incentives

California State Tax Credit

For the newly adopted $10,000 State Tax Credit for homebuyers that the Governor just implemented, this bill allocates $200 million dollars toward State tax credits for homebuyers; $100 million will be designated towards any home buyer who buys a newly built home and $100 million towards a first time homebuyer who buys a newly built or an existing home.

The tax credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit, therefore having to repay it to the state.

A first time homebuyer who closes a  transaction on an existing home as a principle residence between May 1, 2010 and December, 31, 2010 will qualify for the tax credit.  Buyers of new homes can reserve a credit by entering into a ratified contract between May 1 and Dec. 31, filing the proper paperwork with the tax board and closing escrow by Aug. 1, 2011.

The program is on a first come, first serve basis. Once the money runs out, the program will end, so there is no guarantee for any homebuyer until they get confirmation of their status for the credit.

Federal $8000 First Time Homebuyer Tax Credit

The $8,000 first-time homebuyer tax credit is still available for members of the military who are serving overseas

• Now, qualified first-time homebuyers would receive a tax credit of up to $8,000 if they sign a purchase contract by April 30, 2010, and close by June 30, 2010
• The home purchased must be their primary residence
• Buyer cannot have owned a home during the past three years
• Tax credit is up to 10 percent of the home’s value (not to exceed $8,000)
• Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers)
• Buyers don’t need to repay the tax credit if they occupy the home for three years or more
• Members of the military who are serving overseas on “official extended duty” for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit

New $6,500 tax credit for current or previous homeowners purchasing a primary residence

• Now, qualified repeat homebuyers would receive a tax credit of up to $6,500 if they sign a purchase contract by April 30, 2010, and close between November 7, 2009, and June 30, 2010
• Eligible homebuyers must have lived in their current home for five consecutive years of the past eight years
• The new home’s cost can be less than that of the current home
• Tax credit is up to 10 percent of the home’s value (not to exceed $6,500). Purchase of homes priced above $800,000 are not eligible for the tax credit
• Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers)
• Buyers don’t need to repay the tax credit if they occupy the home for three years or more
• Members of the military who are serving overseas on “official extended duty” for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit

Would you like to receive more information about current or future tax credits or see if you currently qualify?  Fill out our contact form below: