Good news for real estate agents in California – a new home and first time home buyer tax credit has been approved and it will run from May 1st until the end of the year or whenever the funds are exhausted. The cap for the tax credit has been set at $100 million for all new home buyers and first time home buyers who will become eligible to receive it. Overall, the tax credit for your homebuyers could equal up to 5% of the purchase price or $10,000, whichever is less. The credit will be awarded in equal parts over three years with no payment exceeding $3,333.
With the recent success of the federal tax credit, it is a perfect time for California to extend a similar credit. Nationwide home sales saw an increase in March and analysts point to the end of the federal tax credit as an explanation. Hopefully, California will see similar results. Continue reading