| Governor Arnold Schwarzenegger recently signed a | | | | must not be related to the seller of the house. The |
| new tax credit deal for home buyers in the Golden | | | | buyer will be required to use the new home as their |
| State aka California. The new credit is much better | | | | principle residence for a minimum of 2 years in order |
| than the previous Homebuyer Tax Credit. The new | | | | for the loan to remain unpaid. If the buyer does |
| deal provides US Dollars 200, 000 000 in credits for all | | | | move out of the house, the grant will be forfeited |
| home buyers. Unbelievable? Believe it! | | | | and the buyer will have to repay the credit. |
| The US Dollars 100 million is allocated to first time | | | | The new bill is AB183 and is much better than the |
| home buyers and US Dollars 100 million to new home | | | | previous bill. It awards credits to in excess of 17,000 |
| buyers. A first time home owner is anyone who has | | | | homebuyers that are buying existing homes and in |
| not owned a home in the last 3 years. The price of | | | | excess of 14,000 new home buyers. |
| the new home has no bearing on the application and | | | | This housing bill is part of Governor Schwarzenegger's |
| there are no income limitations. | | | | plan for creating jobs and stimulating the economy of |
| The tax credit you are eligible for will equal either 5% | | | | California, the Golden State. He is very excited about |
| of the purchase price of your new home or $10 | | | | the implementation of this bill as it will enable more |
| thousand, whichever is less. The credits are paid out | | | | Californians to purchase homes. It is estimated that |
| in annual installments over 3 years. The credit is not | | | | the bill will cost the tax board approximately US |
| refundable like federal tax credit. | | | | Dollars 200, 000 000. |
| Eligible buyers must be eighteen years or older and | | | | |