The $10000 California Tax Credit Works!
Monday, March 9th, 2009
***Update – California 2010 New Home Tax Credit Takes Effect 5/1/10 – Details Here***
$10000 CA Tax Credit
The American Recovery and Reinvestment Act brought us an $8,000 Federal Tax Credit and higher loan limits.
The $10,000 California State Tax Credit came from SB 15 and was part of the State Budget compromise.
Put these programs together and you may be eligible to receive up to $18,000 in State and Federal Tax credits along with a higher conforming loan amount. Buyers are beginning to understand the potential of these stimulus packages.
In the first three (3) days of the $10,000 California State Tax Credit, the Franchise Tax Board received over 170 requests for certification of the tax credit. The amount requested was over $1.7 million! That’s a lot of buyers, paying a lot of attention to the new stimulus legislation!
I’m glad to see that people are taking advantage of the tax credits.
I just looked and as of 3/11/2009 there are 711 apps. – is there truly an increase in new home sales or are the numbers about the same as before the tax credit.
Jayson,
Let me point you to a recent newspaper article. According to Reuters News Service “California February homes sales up 42.5%” over February 2008. This article was posted on their web sit on March 19th.
The numbers represent eight straight months of homes sales figures increasing over the same month, one year earlier. Obviously, price and mortgage interest rates are having their desired impact on the sales numbers.
Now, with Tax credits and increased conforming loan amounts, I expect you will see March numbers continue this strong resurgence.
Steve