Calif. Legislature extends homebuyer tax credit

Calif. Legislature extends homebuyer tax credit

California lawmakers have voted to extend a $10,000 tax credit for first-time homebuyers.

The credit will apply to first-time buyers who purchase new or existing homes between May 1 and Dec. 31 of this year. It is for 5 percent of the purchase price, or up to $10,000.

The bill received bipartisan support in the Assembly and Senate on Monday and will be sent to Gov. Arnold Schwarzenegger.

The governor, who proposed the extended tax credit as part of his job-creation initiative, is expected to sign the bill.

California recently passed a tax break that capped the total credit available at $100 million on new homes purchased between March 1, 2009, and March 1, 2010.

The new bill increases that cap to $200 million and applies to new and existing home.