To help stimulate home sales, both the federal and state governments are offering tax credits for Californians purchasing their piece of the American dream.  Federal law offers up to $8,000 for first-time homebuyers and $6,500 for long-time residents.  California law offers up to $10,000 for first-time homebuyers or buyers of properties which have never been occupied (new construction). 



To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010. Here’s a summary of the two tax credit laws

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