The State of California has passed a new home credit for a qualified new principal residence.  San Diego North County buyers must buy from May 1, 2010 through the end of the year. This would apply to almost all new San Diego North County homes for sale. Escondido homes or Encinitas homes constructed by the taxpayer would not qualify since they are not considered purchased.

The new Escondido home, Oceanside home, Encinitas home, or other North County home must be new, but can be attached or detached.  They can also be condos or manufactured homes.  New means it has never been occupied. North County sellers must certify that the San Diego home has never been occupied in order for a taxpayer to receive an allocation of the credit.

You are not eligible if you used the 2009 new home tax credit or if you are under 18.

New home tax credits are limited to the lesser of 5% of the purchase price or $10,000.

The State has set aside $100,000,000 for this new home program, but when the money runs out, so does the program. When buying  North County homes, buyers who qualify for the new home credit may reserve a tax credit pri0r to close of escrow.  To reserve a new North County home tax credit, the buyer must fill out and fax to the state a reservation request which certifies that they have entered into a qualified new home purchase under the credit’s guidelines.  A copy of your signed North County home must be included with the purchase contract.  This credit  is strictly, first come, first serve. If you want to get in on this great opportunity you had better get started.

You should always take your Realtor with you on you first visit to new model homes.   Contact Gary Harmon, your top North County Realtor today.  For other types of credits see California 2010 Tax Credit First Time Buyer.