Last week, in his “State of the State Address,” Governor Arnold Schwarzenegger proposed a new tax credit for first time home buyers. This proposal is similar to last year’s credit of $10,000. The tax credit, would provide up to $3,333.00 off a buyer’s state taxes for each of the next three years.
applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.