California to offer $10,000 tax credit to homebuyers

[FarCenter]

By Jim Wasserman | Sacramento Bee

California home buyers can begin claiming $10,000 tax credits starting May 1 under a bill expected to be signed soon by Gov. Arnold Schwarzenegger.

The legislation allocates $200 million for more state tax credits — twice what was offered last year to 10,659 buyers of new, unoccupied homes. The state's newest housing stimulus will grant $100 million in tax credits to first-time buyers of existing homes and $100 million to anyone who buys a new, unoccupied home.

The state Franchise Tax Board on Tuesday estimated nearly 32,000 homeowners statewide might get the tax breaks. Buyers must close escrow or reserve a credit on or after May 1 and before or on Dec. 31 to qualify.

The bill, AB 183, passed both houses of the Legislature by near unanimous votes. But one local lawmaker, Assemblyman Roger Niello, R-Fair Oaks, voted against it.

"I think it's a lot of money in a deficit situation that doesn't have the desired benefit," Niello said Tuesday, noting that housing prices are still depressed despite earlier credits designed to stimulate the market.

<SNIP>http://www.mcclatchydc.com/2010/03/24/91023/california-to-offer-10000-tax.html

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California piles on more debt in a desperate attempt to salvage developers and real estate brokers.

[Cronus Protagonist]

1. Meanwhile they slash education and health care funding

Plenty of money for prisons and home buyers, though.

[Statistical]

2. Are they insane in CA? "new unoccupied homes"

New unoccupied homes?
So what do you think this will do to production of "new unoccupied homes"?

Anyone think home builders will build more. At a time when we need to see hosing starts decline. There is massive oversupply of homes on the market. It will take months if not years for the system to absorb all that oversupply. Building more new homes at a faster rate only exasperated that problem. It is an artificial crutch the the worst sub-segment of housing market to subsidize.

Why not say fuck the home builders and spend $200 million on grants for improving energy efficiency (putting same contractors to work renovating wasteful homes)? Keeps people employed, helps out lower income folks, and cuts energy use (global warming anyone?).


If I were a CA muni-bond holder I think I would have ulcers right about now. How long before CA becomes out Greece?
One day I hear about how the US needs to bail-out CA and then next day I hear yet another example of CA doing dumb shit. No bail outs for CA (or any other state). Our State works hard to keep fiscal house in order, CA is a "big kid" they can learn how too.