AB 183, a modified version of last year's New Home Credit, was signed by the Governor today. The bill provides credits for first-time homebuyers, and taxpayers buying homes that have never been occupied.

Taxpayers who purchase a "qualified principal residence" on or after May 1, 2010, and before January 1, 2011, will be allowed a credit equal to the lesser of 5% of the purchase price or $10,000. The credits are also extended to taxpayers who enter into an enforceable contract on or after May 1, 2010, and before January 1, 2011, so long as the sale is completed before August 1, 2011.

 Like the prior New Home Credit:

• The taxpayer must apply the credit in equal amounts over three successive taxable years, beginning with the year in which the qualified principal residence is purchased;
• Each credit has a $100 million limit, and will be awarded to taxpayers on a first-come, first-served basis; and
• The credits are not refundable, will not reduce AMT, and cannot be carried over.