The Housing Chronicles Blog: Say bye-bye to the California tax credit for new homes

Friday, July 3, 2009

Say bye-bye to the California tax credit for new homes

It looks like the very popular tax credit program of up to $10,000 to encourage sales of new homes in California has now been cut off and unlikely to be renewed due to the state's considerable budget problems. Word has it that the tax credit -- even more than the $8,000 program offered by the federal government for all homes -- was instrumental in helping to spike sales in new homes of all price ranges. From an L.A. Times story:

California is cutting off applications for a tax credit that was designed to promote sales of new homes.

The Franchise Tax Board said it would stop taking applications for the tax credits at midnight Thursday.

The program offered $100 million in credits to about 10,000 consumers who buy homes that have never been occupied. The credit is equal to 5% of the purchase price or $10,000, whichever is less.

Buyers must occupy the homes for at least two years immediately after the purchase.

The tax board expects to have received 12,000 applications.


Stephen said...

Nice sharing post on real estate.

Brandon Green said...

California has so many financial problems, this move probably makes sense.

stephentan82 said...

Yep. For me it is make sense too. Probably other states may take this as example to resolve housing issues.