California builders received encouragement on October 14, 2009 when the state Senate approved extension of the successful $10,000 tax credit that stimulated thousands of new-home sales this past spring and summer. The Senate voted 35-1 to reauthorize the use of $30 million in credits not awarded during the first program. That should allow the state to give tax credits to about 4,300 more buyers of new unoccupied homes.
The bill goes now to the Assembly, which is expected to consider it next week. Read more about the California tax credit in the Sacramento Bee.
Federal lawmakers are trying to extend and expand an $8,000 federal tax credit through June 30, 2010 that otherwise will expire December 1 of this year. They are also trying to eliminate the first-time homebuyers requirement. The latest Senate proposal would drop the requirement that the credit be available only to first-time buyers, broadening the reach of the program but also adding to its cost, estimated by congressional analysts at $16.7 billion. Read more about the possible federal tax credit extention.
