New Home Credit and First Time BuyerCredit of $10,000 goes into effect May 1, 2010. $100 million isallocated to the New Home Credit and $100 million to the First TimeBuyer Credit.

The very popular New Home Credit in 2009 ran out ofmoney quickly. It generated so many sales that it was re-introducedagain this year along with the First Time Buyer Credit.
The money for the First-Time BuyerCredit is expected to run out much faster than the New Home Credit thisyear.

Theeligible taxpayer who purchases a qualified personal residence onand after May 1, 2010, and on or before Dec. 31, 2010, or whopurchases a qualified principal residence on and after Dec. 31,2010, and before Aug. 1, 2011, pursuant to an enforceable contractexecuted on or before Dec. 31, 2010, will be able to take theallowed tax credit. The credit is equal to the lesser of 5 percentof the purchase price or $10,000, in equal installments overthree consecutive years. Under AB 183, purchasers will be required tolive in the home for at least two years or forfeit the credit(i.e., repay it to the state).

HOWEVER...this money willgofast
.
The $100 millionallocated for California's first-timehomebuyer taxcredits may be depleted in about 20 days or sooner. Thetotal tax credit allocation for all taxpayers is $100million for first-time homebuyers and $100 million for new homes, bothon a first-come, first-served basis.

For an update on howmany applications have been filed and for the dollar amount, watch thissite:
http://http://www.ftb.ca.gov/individuals/new_home_credit.shtml
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Comments

  • Some experts say the credit won't last very long either. They think it'll run out of money by early summer.
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