AB 183 will provide $200 million For Homebuyer Tax Credits

On March 25, 2010 Governor Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit Legislation, into law.

AB 183 will provide $200 million for home buyer tax credits. $100 million for qualified first-time homebuyers of existing homes and $100 million for purchasers of NEW, or previously unoccupied homes (abandoned,bank owned). This opportunity will be available pursuant to an enforceable contract executed from May 1, 2010 to December 31, 2010.

The credit will equal 5% of the purchase price or $10,000--and will be paid in equal installments over three consecutive years. Purchasers will be required to live in the home for atleast two years or forfeit the credit.