Wednesday, January 06, 2010

Schwarzenegger Proposes New Round of Homebuyer Tax Credits

From the SacramentoBee.com:

Gov. Arnold Schwarzenegger proposed a new round of $10,000 state tax credits this morning for buyers of new and existing homes in California.

He proposed setting aside $200 million for the credits - twice what was allocated last year for tax credits given to more than 10,600 buyers of newly built homes.

The credit could be combined with an $8,000 federal tax credit that expires April 30.

The proposal was part of the governor's job creation strategy outlined in his annual State of the State speech to a joint session of the state Legislature.

The state's homebuilding industry has long pushed for an extension of the credit that last year helped it trim its supply of excess inventory. Builders competing with cheap bank repos have seen fewer sales the past two years than at any time during the half century California has been keeping records.