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