California steps up and filled the federal tax credit through the end of 2011

Late this afternoon, Governor Schwarzenegger signed Assembly Bill 183 into law. The Homebuyer Tax Credit legislation provides $200 million for home buyer tax credits. Allocating $100 million for qualified first-time home buyers of resale home & $100 million for purchasers of newly built homes.

A taxpayer who purchases a qualified personal residence after April 30, 2010, and before Jan 1, 2011 or has an enforceable contract executed between April 30 2010, and Jan 1 2011 will be able to take the allowed tax credit. The credit is equal to 5% of the purchase price or $10,000 which ever is lesser in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit and pay it back to the state.

So California steps up and filled the federal tax credit through the end of 2011.