Yes! Our fearless Governator, Arnold Schwarzenegger, just signed AB 183 which will enact a first-time home buyer tax credit for the lesser of 5% of the purchase price or $10,000. The effective date is to be May 1, 2010, deliberately starting one day after the federal tax credit requirement to be in contract ends.
$100 million is being allocated to existing homes and another $100 million is being allocated for new construction or previously unoccupied homes. Unlike the federal tax credit, California's credit will be evenly distributed over a period of three years. Another requirement is that the first-time home buyer must live in the residence for at least 2 years, or they will have to repay the State.
The previous tax credit program that California had only applied to new homes, and the allocated money ran out eight months before the program was set to expire. There is a lot of hope that this new tax credit will stimulate new jobs within California's housing market. This is great news for Californians who qualify for the first-time home buyer program.
Way to go, Arnold!
Cynthia Larsen (707-332-2560) is an independent broker and owner of Safe Haven Realty in Sonoma County, California. Visit www.safehavenrealty.com to view available homes for sale and to learn more about this beautiful wine country destination.