Funds for California Tax Credit for First Time Homebuyers Runs Out

The California Legislature in March 2010 passed legislation ( Bill number AB 183 ) establishing a new homebuyers tax credit, which the Governor signed. California had previously passed a similar credit last year, but funding was limited to $100 million and was on a first come first served basis, and funds ran out last summer. The previous tax credit was limited to new construction, however the new credit can be used by first time homebuyers for new or existing homes or by other homebuyers for new homes.The homebuyer tax credit began May 1 and provided a $200 million pool of money split equally between first-time homebuyers and buyers of new homes.

These new funds are also limitied to the amount of funding on a first come first served basis, and as of the end of June 2010, the $100 million allocated for the first time homebuyer credit had been fully reserved. To see the remaining funds available for the new home homebuyer credit, go to http://www.ftb.ca.gov/individuals/new_home_credit.shtml.

Details of the tax credit can be seen at my original posting on this subject at California Legislature and Governor pass Home-buyers Tax Credit