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Who would have thought, a new Homebuyer Tax Credit for California homebuyers has been signed by the governor.

Last Monday the California State Legislature passed Assembly Bill 183 which will provide $200 million in homebuyer tax credits for California homebuyers.

The bill is part of a package of four bills, passed at the request of the Governor, designed to help stimulate the economy and create jobs.  The bill allocates $100 million for qualified first time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. To be eligible, homebuyers must close escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or have executed an enforceable contract on or before December 31, 2010 and close escrow on before August 1, 2011.  This credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years.

Keep in mind that the bill imposes a statewide limit of $200 million on the total tax credit allowed.   Once the total has been allocated tax credits will no longer be allowed.  It is necessary to file a “certification” with the Franchise Tax Board to reserve a credit. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit, or in other words, repay it to the state. The details are available on our website, www.aboutbayareahomes.com, under Quick Links.

If you or someone you know is thinking about buying a home, this is valuable information.  For details I recommend you contact your REALTOR® or a qualified tax advisor.  I am always available to answer your questions or discuss your concerns. Simply text, call (650 325 7877) or email me (russ@brokerruss.com)  for a prompt response.

Now, more than ever buyers and sellers will benefit from the advice and guidance that an experienced REALTOR® can provide. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information,  market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more. Of course I am always available to discuss your real estate or mortgage related questions or concerns, just call, text or email me for a prompt response.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240.