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On March 25, 2010 Governor Schwarzenegger signed Assembly Bill 183 which provides $200 million for home buyer tax credits. The $200 million will be divided between first-time homebuyers and “move up homebuyers. The following a summary of the legislation:

The Tax Credit: Eligible purchasers may qualify for a credit against their state income taxes in an amount equal to the lesser of 5% of the purchase price or $10,000. The credit will be applied over a three-year period. The credit may only be applied to the purchase of one qualified property.

Property Eligibility: To qualify for the credit the property purchased must be a single-family residence, either detached or attached, that is the principal residence of the purchaser. The property may be newly constructed or a “resale home.

Home buyer Eligibility: First-time and “move-up homebuyers who are at least 18 years of age. “First-Time homebuyer means any individual who had no ownership interest in a principal residence for at least the preceding three-years.

Occupancy Requirements: Purchasers will be required to live in the home for at least two years or forfeit the credit.

Deadline: To qualify for the credit a property must be purchased on or after May 1, 2010, and on or before December 31, 2010.

If you would like to find out about how to qualify for this credit, call me at 408.905.6261.