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First-time California Homebuyers Gobble Up Tax Credit

By August 25, 2010Blog, Real Estate Law

As we discussed here in April, California recently implemented a program that offers a state income tax credit of up to $10,000 to first-time homebuyers and buyers of newly-constructed homes.

While the clock hasn’t expired on qualifying home purchases – the deadline to close is December 31, 2010 – it appears as though the $100 million allocated to the first-time homebuyer part of the program has run out.  The Franchise Tax Board has announced that, as of August 16, 2010, applications are no longer being accepted for the first-time homebuyer credit.

This news will put downward pressure on an already-struggling California housing market, particularly in the lower-cost housing tiers from which first-time homebuyers tend to select.

Scott M. Toussaint, Real Estate Group