Governor proposes extension, expansion of home buyer tax credits

During his State of the State address, Governor Schwarzenegger today announced his 2010 proposals for California. Included in the proposals is a recommendation to set aside $200 million for a new round of $10,000 state tax credits for first-time home buyers according to reports today by the California Association of REALTORS®. The proposal expands upon the initial $10,000 state tax credit by including both new and existing homes. Last year’s tax credit applied only to new homes. The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.