California Sees Another Homebuyer Tax Credit

Press Release from

Governor Arnold Schwarzenegger today returned to the La Ventana
Homes project in Fresno where he kicked off his campaign to extend and
expand the hugely successful homebuyer tax credit to sign legislation
that will do just that. AB 183,
authored by Assemblymember Anna Caballero (D-Salinas) and Senator Roy
Ashburn (R-Bakersfield), will provide a tax credit of up to $10,000 to
Californians who are buying their first home or purchasing a brand new
home. This legislation, part of the Governor’s larger California Jobs Initiative, will play a key role in getting our economy moving again by encouraging home ownership and stimulating job creation.

“I have been up and down the state pushing this important housing
bill that will get people off the fence and into homes while creating
jobs and stimulating our economy – and today I am proud to take action
and put it into law,” said Governor Schwarzenegger. “Creating jobs is
my number one priority and I am glad that I have been able to sign two
job-creating bills in two days. I applaud the legislature for their
great work and encourage them to keep it up and pass the remaining
job-creating elements of my California Jobs Initiative.”
AB 183 was passed by the legislature on March 22 and gives the
Franchise Tax Board authority to extend a total of $200 million in tax
credits to California homebuyers; $100 million for buyers of new,
unoccupied homes and another $100 million for first-time buyers of
existing homes. The credit will be extended from May 1, 2010 to
December 31, 2010. The tax credit will be available to buyers on a
first-come, first-served basis and is applied in equal amounts over a
period of three taxable years. To qualify, the buyer must not be a
dependant and must purchase a home that does not belong to a relative.
Governor Schwarzenegger fought hard to extend and expand the
homebuyer tax credit after its successful run in 2009. That $100
million tax credit, which was approved in February 2009, ran out after
just four months with 10,659 Californians claiming the credit –
increasing home purchases, jumpstarting building projects and boosting
local economies. In fact, La Ventana Homes saw a 300 percent increase
in sales when the tax credit went into effect.
The homebuyer tax credit is a part of the larger California Jobs Initiative that
the Governor proposed in his State of the State address in January to
create jobs and stimulate the economy. Today’s bill is the second piece
of it to be approved by the legislature. A sales tax exemption on
green-tech manufacturing equipment was also approved to encourage green
businesses to relocate and invest in California. The Governor signed that yesterday.