UPDATE: Today Gov. Schwarzenegger signed into law AB 183, a bill which would provide $200 million for homebuyer tax credits. Especially helpful for Marin County first-time home buyers who will qualify for the full $10,000 tax credit.
The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to research conducted last year by the California Association of Realtors.
AB 183, passed at the request of the Governor, is designed to help stimulate the economy and create jobs. It allocates $100 million for qualified first time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, based on a firm contract executed on or before December 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).
Not to be confused with the Federal tax credit, which expires April 30 and is limited to purchases under $800,000. Questions? Call me 415.302.7787 right now.
Posted by Jack McLaughlin 
