I just got this friendly reminder from builder Pardee Homes (interestingly enough a division of lumber giant Weyerhauser) that California’s $10,000 tax credit for people who buy new homes in the state has an expiration date.
Much like the program that gave buyers of hybrid cars stickers that let them drive in high occupancy vehicle lanes despite having only one person in the car (until the allotment of stickers ran out), the money for tax credits totals $100 million. After that—no more credits. We’re about one-third of the way through.
California Tax Incentive
Funds Going Fast.
The State of California has allocated $100 million for a tax credit for new home purchases. As of April 15, 2009, $34.9 million* of the funds have been claimed. What many people may not know is that once these funds are allocated, they will no longer be available.
In other words, when they’re gone, they’re gone.
Here’s a quick overview of the California Tax Incentive:
· Tax credit of up to $10,000 (or 5% of home price, whichever is less), paid out over three tax years in equal amounts.
· You must buy a newly constructed home and live in it for at least two years.
· There are no income restrictions or first-time homebuyer requirements.
· And there is no repayment requirement (unless you sell or rent out the home before two years expire).
You also may be eligible for the Federal Tax Credit up to $8,000.
These are the breaks you’ve been waiting for. Take advantage of these incredible tax credits before they run out and own the home of your dreams.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.