Homebuilders Applaud Passage of Homebuyer Tax Credit
SACRAMENTO, CA – March 26, 2010 – (RealEstateRama) — California homebuilders said the $10,000 tax credit for purchasers of new homes and for first-time purchasers of existing homes will help jump-start the homebuilding industry, create jobs and provide a much-needed boost to the state’s economy.
Governor Schwarzenegger today signed into law AB 183 by Assembly Member Ana Caballero, D-Salinas, and co-authored by Senator Roy Ashburn, R-Bakersfield, which establishes a tax credit of up to $10,000 or 5 percent of the purchase price of a newly built home, and up to a $10,000 tax credit for first-time purchasers of existing homes. The credit will be available beginning May 1 and be good through Dec. 31, 2010, or when funding is exhausted, whichever comes first. The $200 million allocated for the program is split evenly with $100 million going to purchasers of new homes and $100 million going to first-time buyers of existing homes. (To learn more about the details of the tax credit, click here.)
Liz Snow, CBIA’s President and CEO, said the credit is a true win-win for homebuyers, homebuilders, and the overall economy.
“We applaud the Legislature and the Governor for keeping the focus on jobs and the economy,” said Snow. “The tax credit will help push prospective buyers off the fence, clear out inventory, and jump-start the homebuilding industry, which will help create jobs and reinvigorate the state’s economy.”
Snow also noted that the tax credit’s impact on the state budget will be minimal as the credit will be paid out over the next three years.
“Additionally, recent studies show that building a new home generates roughly $16,000 in state tax revenues alone, which supports the notion that the credit will more than pay for itself,” said Snow. “The tax credit is a true win-win and a great step in getting our state out of the economic doldrums.”
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The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association’s Web site, www.cbia.org.
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Media Contact:
Michael Castillo
Communications Manager
(916) 443-7933 ext. 346
mcastillo (at) cbia (dot) org
