Tax Credit Extended

President Obama just signed into law the Tax Credit extension for first time homebuyers and existing homeowners.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

California Offers $10,000 If Buy a New Home

The properties in California must close escrow between March 1, 2009, and March 1, 2010.
The homes must be:

* Brand new, single family homes
* Never been occupied
* Be the buyer’s principal residence.

Californians can claim $3,333 per year for three years, beginning with the 2009 tax year. It aims to help new homes compete with the glut of foreclosures.

“Back in 1975, the U.S. Congress enacted a tax credit identical to this one, and it worked. It stimulated sales — doubled sales within a year,” said Tim Coyle, California Building Industry Association.”

The money is coming from a $100 million allocation. Once it is gone it is gone.