$10,000 Credit to Help Spur New Home Construction and Generate Jobs

$10,000 credit to Help spur New-Home Construction, Generate Jobs and state and local Revenues!

SACRAMENTO – California Homebuilders said the $10,000 tax credit for purchasers of new homes included in the new state budget will help jump-start the depressed industry, creating jobs and much-needed tax revenue for state and local governments.

The Assembly passed SB 15XX  which establishes a tax credit of $10,000 or 5 percent of the purchase price of a newly built home sold between March 1 of this year and March 2010, or when funding is exhausted, whichever comes first. The measure is similar to a temporary federal tax credit enacted in 1975 that helped end a severe housing recession and rebound the nation’s economy.

The credit is a true Win-Win for Homebuyers, Homebuilders, Lenders and state and local governments.

“The tax credit will help push prospective Buyers off the fence and will help jump-start the homebuilding industry, which last year built the fewest homes and apartments since we began keeping records in the early 1950s. This will help provide much-needed tax revenues to the state and to local governments.
In addition, because building a new home generates some $16,000 in state tax revenues alone, this tax credit will more than pay for itself, and since the credit will be paid out over three years, it’s expected to provide a significant revenue boost this year.” 

Also Note:  first-time buyers who purchase a new home this year can take advantage of both the state tax credit and the recently enacted $8,000 federal tax credit – a huge incentive to buy a new home. As mentioned earlier this week. “Economists agree that Housing Leads the Nation OUT of Recession, and with this package we believe the depressed California Homebuilding industry will start to recover and help the state’s economy begin to Rebound.”

Remember! When homes are built, the contractors, laborers and suppliers spend money on gas, vehicle maintenance, coffee, breakfast, lunch and dinner! All Parts of Our Local Economy are affected positively. We would like to hear from you and get your feedback.

Don and Vivienne Rolfe, Keller Williams Realty, Masters Club 2008,  Agent Leadership Council, CARE  Board of Directors, Chair and member-Placer County Association of Realtors Housing Opportunity Committee and Leadership Committee.

Thought for the day:  ARE YOU STEERING or DRIFTING??