New tax credit for buying a brand new home, but it won’t last …
Many first time homebuyers (those who haven’t had ownership in a principal residence for 3 yrs.) have heard about the $8000 tax credit included in the recent stimulus package. So many are taking advantage of this benefit that it is anticipated the program will certainly meet and exceed the 2 million target set by Congress before it expires on 11/30/09.
The original allocation was $13.6 billion and there is no provision to end the program early if it exceeds those limits.
Fewer people, however, are aware of a similar tax credit in California.
The state is offering a tax credit up to $10,000 to buyers purchasing a new home before this program ends March 1, 2010 or until $100 million in tax credits are approved. As of April 15th, state officials reported they had received applications totaling $34.9 million or a little over one-third of the program’s allotment.
UPDATE: There are no income limits and anyone, first time buyers and move up buyers are both eligable until the funds are exhausted! The credit will be up to to $3,333 per year off your taxes for 3 years.
The goal of selling at least 10,000 newly constructed homes will most likely be met.
Be sure to be one of the smart buyers to take advantage of both federal and state tax credits this year by contacting our office and speaking with one of our Buyer’s Agents today.
Remember-nothing lasts forever!!!
If you are out looking for a home with one of our buyers agents we will also include new homes on the tour – meet our team or Search here for San Diego Real estate.
Written by Erin McBratney
{ 3 comments… read them below or add one }
Curious about 1st time home ownership programs in CA…I don’t qualify for the Federal prgoram since I currently do own, but never have owned in CA. Wonder if I would qulify as a “first time” owner under the CA Program only? Probably not, huh?
Hi Mike, on further investigation the CA credit has no limitations – see our update in the post.
San Diego real estate prices are actually at 2003 levels but keep in mind the inventory is beginning to go down because prices have been so good. Hope this helps, Erin
That is great! These incentives, having the both credits should really help in your market. As you say they won’t last forever. I hope people take advantage of them and we can get some of the inventory sold. It seems to me California is selling pretty good now. I hope it continues.