Even more tax credits for California home buyers on the way?

I always swore I’m not a political person.  But I see that my last two posts (this one included) have political content and commentary.  Sign of the times?  Or a sign that I’m changing?  Hmmm…

Getting on topic, last night Gov. Arnold Schwarzenegger gave his final State of the State address.  I doubt most folks watched it (you can click here to read and watch his full speech), but there was plenty of bold talk in the governor’s speech.  Like most political speeches, time will tell if any of Arnie’s twilight-talk will turn into legislative action, but one suggesion that may grow legs is a proposal to expand California’s tax credits to home buyers.

In 2009, California home buyers were eligible to receive a $10,000 state tax credit if purchasing a NEW home (existing homes were excluded from the credit).  This program proved popular as the $100 million allocation ran out faster than expected.  This state program’s popularity, in conjunction with the current federal home buying tax credit program that many credit to stabilizing the national housing market, will likely force state legislatures to look closely at the governor’s proposal.

If you are a potential home buyer in California in 2010, it is conceivable that you could qualify for up to a total of $18,000 in tax credits ($10K state and $8K federal).  Keep an eye out for news on this pending legislation that will now work through the Sacramento Capital.  And as always, check back here for insightful updates from me.