California Tax Credit for Home Buyers

California will provide $200 million in new tax credits for homebuyers, to be equally split between first-time buyers of existing California homes and new California homes.

Home buyer who makes a purchase in California between this May and August 2011 will receive a credit for 5 percent of the home's purchase price, up to $10,000 over three years. The smartest home buyers could get up to $18,000 for buying a house, because of overlap with the federal home tax credit that’s giving as much as $8,000 to buyers.