Federal and California Homebuyer Tax Credit Summaries, Links (Federal Deadline April 30!)

California Tax Credit
The newly announced California tax credit is available to homebuyers closing from May 1, 2010 to July 31, 2011, but they must be in contract by December 1, 2010. The credit is for 5% of the home price up to $10,000 cap. It’s for owner-occupied single family homes only, and it’s for first time buyers or buyers of homes that have never been occupied. This credit is on a first-come, first-served basis until the state’s allocated $100m to first time buyer and $100m to never-occupied programs are used up. There are no income limits on borrowers. The tax credit has to be claimed one-third per year over three years. UPDATE APRIL 17: California Association says CA credit could run out in a few weeks.

Federal Homebuyer Tax Credit
The deadline for the Federal homebuyer tax credit fast approaching. Federal homebuyer tax credits are available to buyers in contract before April 30, 2010 and closing by June 30. The credit is allowed for single buyers earning up to $125,000 and married couples earning up to $225,000. Who qualifies: first time buyers who haven’t owned a home in three years get an $8000 credit, and buyers who have owned a primary residence for at least five of the last eight years get a $6,500 credit. The tax credit is equal to 10% of a purchase price—credits are capped at $6500 for repeat buyers or $8000 for first time buyers, and purchase price is capped at $800,000.

More on CA and Federal Tax Credits
A credit means a buyer’s taxes are directly reduced, and if a buyer didn’t owe the full amount of their eligible credit in taxes, they would file to receive a refund check.

Here’s a handy, printer-friendly Homebuyer Tax Credit Fact Sheet outlining key parameters for the newly announced California tax credit available to homebuyers buying from May 1, 2010 to July 31, 2011. There’s also a refresher on the Federal tax credit. And here are some additional links on each program:

• California Homebuyer Tax Credit: [Official Info Page]
• Federal Homebuyer Tax Credit: [Full Q&A] [IRS Briefing]