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C.A.R. applauds Gov. Schwarzenegger's signing Homebuyer Tax Credit legistion into law

Category: Real Estate News | Permalink

Published: Tuesday, April 06, 2010

On March 25, 2010 The California Association of Realtors (C.A.R.) commended Governor Arnold Schwarzenegger for his leadership in authorizing the Homebuyer Tax Credit legislation into law.

�We are pleased that Governor Schwarzenegger recognized the positive impact the tax credit will have for families hoping to buy their first home,� said C.A.R. President Steve Goddard. �Successful passage of this legislation was the result of our efforts in Sacramento over the last several weeks as REALTORS® and our team in the capital worked for the bill's passage before it landed on the governor's desk earlier this week.�

California's previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year's legislation, the Homebuyer Tax Credit signed into law today adds a tax credit for the purchase of an existing home by a first-time home buyer.

AB 183 will supply $200 million for home buyer tax credits; distribute $100 million for eligible first-time home buyers of existing homes and $100 million for buyers of new, or previously vacant, homes. The qualified taxpayer who obtains a eligible personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, 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 (i.e., repay it to the state).