California Plans to Allocate $200 M to Home Buyers

Last Wednesday Gov. Schwarzenegger proposed a plan to allocate $10,000 to more than 20,000 California home buyers as state tax credits. The tax credits would provide up to $3,333 off state taxes for each of the next three years and could be combined with an $8,000 federal tax credit. Last Year, California legislators approved $100 million in tax credits for buyers of new, unoccupied homes.

Realtors, brokers and developers are behind this full force, because it would stimulate their industries and offer some job growth. The opposition to Gov. Schwarzenegger’s proposal are renters, who do not believe that their taxes should be spent as an incentive to purchase homes.