California’s new state budget, signed by Gov. Arnold Schwarzenegger Feb 20, includes a $10,000 tax credit or 5 percent of the purchase price of newly built homes.
new state budget, signed by Gov. Arnold Schwarzenegger Feb 20, includes a
$10,000 tax credit or 5 percent of the purchase price (whichever is less) of
newly built homes. Californians who use the new homes as their principal
residence can use the credit to offset their state income tax over three
successive tax years.
The state tax credit applies
to new homes sold between March 1, 2009, and March 1010, or whenever the
funding (capped at $100 million) is exhausted.
credit can be combined with the new federal tax credit of $8,000 for first-time
As it’s been reported, California’s revenues
have plummeted this year, due in part to the state’s deteriorating
home-building industry. The new tax credit, Home Channel News says, is part of
a $41 billion budget that contains steep spending cuts to education and social
services and increased sales and payroll taxes.
Source: Home Channel
California Passes New-Home Tax Credit
February 25, 2009