New Home Incentives

February 20, 2009 12:00:00 AM PST
New home building has been in a slump across the state. That's why State Senator Roy Ashburn of Bakersfield got the state tax break put in the budget in exchange for his vote.Jeff Roberts of Granville homes said it's a welcome incentive. "Absolutely. We're anxious to see any kind of stimulation in any market, whether it be the helping people purchase the foreclosures, or helping people purchase the new homes like we sell." Roberts said.

The state tax break is for 5 per cent of the purchase price, up to ten thousand dollars.

It will be parceled out over three years. The maximum would be a credit of three thousand three hundred thirty three dollars a year, on state income taxes.

It's good towards the purchase of any new house, or condo purchased from March first of this year, and March 1st of next year.

To get the break the home buyer must live in the home for two years.

Mortgage broker David Schilling says it will definitely help new home buyers, but notes it won't help get rid of those existing and foreclosed homes that are keeping the market down.

"Is this going to bring new buyers into the market which would be a good thing for the overall housing situation or is it just going to shift people from buying a foreclosure into buying a new home." Schilling said.

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