On Thursday, Governor Schwarzenegger signed Assembly Bill 183 which involves $200,000,000 (yes, two hundred million dollars) to be allocated for First Time Buyers to receive a tax credit for either $10,000 or 5% of the purchase price of a home (whichever is less). The purchase must be closed between May 1, 2010 and August 1, 2011.
This tax credit incentive is only available to first time buyers (those who have not occupied a primary residence within the last 3 years).
This is more than the $8000 max tax credit that was available only up until April 30th.
Governor Schwarzenegger says that he hopes this Bill will help rebuild our reeling California economy. Selling more homes means less inventory which means California will have to build more homes, which means more jobs. A domino effect.