Back in January, we wrote a blog about Governor Schwarzenegger’s State of the State Address and how he had said that he hoped to sign in a home buyer tax incentive that would apply to not only new condos in San Diego, but also resale homes. We are happy to announce that this new home buyer tax incentive will be a reality very shortly.

This past Monday, the California legislature passed AB 183, providing $200 million towards home buyer tax credits. The Governor is expected to sign the bill into law this week.

San Diego Real Estate – Buyers WIN

AB 183 is one component of group of four bills passed at the request of the Governor. Its purpose is to help stimulate the economy and create jobs. The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

What does this mean to Buyers San Diego Real Estate?

If you purchase a property in San Diego county as your primary home between May 1st and December 31st of this year, you will qualify for a tax credit up to $10,000. The credit is taken over a 3 year period and you must live in the house for at least 2 years.

The Intricate Details

A buyer who closes escrow on a principal residence in the State of California between May 1, 2010 and December, 31, 2010 will be able to qualify for the tax credit. A buyer who closes escrow on a principal residence after December 31, 2010 and before August 1, 2011, will be able to take the allowed tax credit if they are in escrow on an enforceable contract executed on or before December 31, 2010.

This credit is equal to the lesser of 5 percent 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 will have to repay it to the state.

This is a great move on the part of the Governor because it will help buyers stay in the market to absorb some of these great deals we are seeing on San Diego downtown condos for sale. Now the pressure is off for buyer to buy before the Federal Tax credit expires on April 30th.

For more information about this tax credit or how to double dip and get both the federal and state tax credit , give us a call at 619-309-8011.