CA new home buyers can receive a $10,000 tax credit from the state

Attention CA home buyers:

Everyone is hearing of the $8000 federal tax credit applicable to first time homebuyers across the nation. Well now the state of California has signed into place a new, state specific tax credit of its own.

As of March 1, 2009 CA homebuyers who are eligible can receive TWO tax credits, totaling up to $18,000, if they choose to purchase a new home in the state of California. The state will be giving up to $10,000 (or 5% of purchase price, whichever is less) tax credit to purchasers of new, previously unoccupied homes. There are restriction so be sure to check out the link.
A few basics:
- you must be planning to live in the home as your primary residence for two years
- you DON'T have to be a first time homebuyer ( you do for the $8000 from federal plan)
- it will be credited at $3,333 for the next three years
- once the $100,000,000 earmarked for this project is gone, there will be no more credits available (if the average new home sells for $200,000, that means only 10,000 homebuyers will be able to apply for the credit) so don't wait too long if you are on the fence!

here is a link to answer more questions:

http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml#def3

Call or email me if you have any questions,

Adam Dalton, Realtor
Century 21 M&M and Associates
adalton@c21mm.com