California Tax Credit for New Home Purchase

Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
909.336.2131

The first step to stimulate economic growth in our state.

What the Bill Does?

• Establishes a tax credit for the purchase of a newly constructed single-family home htat will be used as a primary residence for a minimum of two years.
• Home must be purchased on or after March 1, 2009 and before March 1, 2010.  
• Tax Credit is equal to 5% of the value of the home, not to exceed $10,000. 
• The total program is capped at $100 Million dollars of credit. 
• Allows individuals to take a tax credit of up to $10,000 spread over 3 years in 3 equal installments.  
• The credits will be allocated by the Franchise Tax Board on a first come first served basis and the Franchise Tax Board may establish guidelines to implement the credits 

How the Bill will Benefit the State

•  The tax credit will put people back to work, stop the downward sprial of housing prices, and increase tax revenues. 
• Over a seven year period, the net benefit to the state is over $1 billion.  
• The tax credit will help to entice people that are waiting to see how far the market drops to buy new homes now.   

Why California Needs this Bill

•  The housing industry accounts for 11% of the states output and revenue.  
• New housing construction contributes nearly $40 billion per year to the California economy and supports over 266,000 jobs statewide. 
• Something needs to be done to stimulate economic growth and get California jump started.  This tax credit is the first step toward that jump start.