Governor Chris Christie Vetoed $100 Million New Jersey Homebuyers Tax Credit Bill

Governor Chris Christie Vetoed $100 Million New Jersey Homebuyers Tax Credit Bill

Today, New Jersey Governor Chris Christie vetoed a bill, which passed in the Spring of 2010, that would give tax credits of up to $15,000 to New Jersey homebuyers.  His reason was that the New Jersey could not afford to forego $100 million in tax revenue over the program's proposed three-year lifespan. Although he didn't specifically praise this program in his veto, he said he was "forced to cut many worthwhile programs from the fiscal year 2011 budget. ... I cannot approve legislation, no matter how meritorious, when the state simply cannot afford it."  He also argued in his veto the money would have been used by people already committed to buying homes and would "briefly and artificially inflate home values." 

According to Jeffrey Otteau, a New Jersey appraiser who studies New Jersey's housing market, the market took a big hit when the federal tax credit expired. If the Governor of New Jersey didn't veto it, The New Jersey homebuyer tax credit basically would have picked up where the federal tax credit which was extended and expanded, left off.  Therefore, without the stimulus New Jersey home prices may continue to decline which could inflate foreclosures. 

In the last six weeks or so, some New Jersey homebuyers who missed the April 30th deadline went back on the fencewaiting for the new tax credit.  Even without the New Jersey tax credit in effect, New Jersey homebuyers should jump off the fence and take advantage of:

• low interest rates;
• attractive prices;
• abundance of inventory in many markets;
• motivated sellers; and
• owning a home is a great investment in your future.

Keep in mind that Govenor Christie said that he would support some economic development programs in the future but unfortunately, New Jersey does not have the luxury of paying for them right now. 

Even without the New Jersey homebuyer tax credit there is no reason for New Jersey buyers and sellers to sit around waiting to see if Governor Christie ever introduces and signs off on an economic development program or housing stimulus, it takes time to buy and sell your New Jersey home. 

Don't wait until the last minute...wouldn't you like to close escrow and move into your "new" New Jersey home BEFORE we fall back on November 7, 2010?