You’ve probably been hearing a lot about the tax credits Governor Schwarzenegger signed into law recently, but if you want to get in on the action you might have to move quickly. According to C.A.R.’s Economics team, if sales forecasts are accurate the $100 Million the state has allocated for first-time buyers may be depleted within the first few weeks of the program. And that’s not taking into account the potential that some buyers scheduled to close escrow in April could attempt to delay closing until May to take advantage of the credit, using up the funds even more quickly.
The law says that buyers getting into contract by the end of the year are eligible, but since the program is first-come, first-served, it looks as though the money will dry up well before the deadline and a lot of people could be out of luck.
If you need more info, C.A.R. has prepared a handy chart summarizing both the state and federal tax credits, and the Franchise Tax Board will be updating their website with application info as it becomes available.
~George