California Offering State Tax Credit For Troubled Housing


California has one of the most trouble housing markets in the country. Along with that the State of California, which is responsible for 13% of the United States gross domestic product or GDP, is also facing a $26.3 billion budget deficit for the 2009-2010 budget year.

But in an effort to revive the lagging real estate market, the state of California is ready to offer homebuyers up to $10,000 to stop waiting and go ahead and buy a house. $200 million has been set aside for the program and it will be split between first-time buyers of existing homes and new units. The program begins on May 1.

The Federal program of $8000 ends on June 30 and contracts must be written prior to April 30 with a closing by June 30. The California program is for closings that happen after May 1. So for a short window during May and June, homebuyers in California may take advantage of both the Federal program and the State program, thereby getting a windfall of $18000 in homebuyer credits.

Hopefully this can benefit many people and give the state of California a much-needed economic boost.