Governor Arnold Schwarzenegger recently proposed to California taxpayers, a new homebuyer tax credit. This latest proposal would apply to the purchase of new homes, as well as existing homes. Close to 11,000 California homebuyers took advantage of last year’s state tax credit.
In his final State of the State address, the governor said that the state’s economy and jobs will be his first priority for 2010. One of his four proposals to help boost the economy included a proposal for homebuyer tax credits of up to $10,000 for the purchase of existing or new homes, which would help stimulate more construction jobs. This would be in addition to first time residences purchased by first time homebuyers. Also under the proposal, the Franchise Tax Board would extend the credit to buyers who purchased homes until $200 million dollars in tax credits have been granted.
Other details haven’t been released yet, such as if there is a deadline by which homes must be purchased, but here are some comparisons and highlights of previous tax credits:
- The current proposal is for the purchase of an existing home, as well as a newly built residence. The previous tax credit was for new homes only.
- The current proposal is to allocate up to $200 million in tax credits. The cap on the previous tax credit was $100 million. Tax credits were allocated on a first-come, first-served basis.
- Like the previous tax credit, the proposed new credit would be worth up to $10,000 to the qualifying buyers.
Stay tuned for more information on this new proposal.
Khai McBride
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