Monday, February 23, 2009

Governor OKs $100 million in new tax credits for homebuyers after eliminating tax rebates for low-income renters

After defunding the renters' and homeowners' tax assistance program (known as the "renters' rebate") on grounds that the state could not afford to make any tax rebate payments to low-income senior, blind and disabled Californians, the Governor has signed new legislation to give $100 million in tax credits to people who buy homes between March 2009 and March 2010.

The new Home Buyer Tax Credit gives purchasers who buy a never-before-occupied single family home a tax credit of 5 percent of the purchase cost up to $10,000. The new tax credit program for homebuyers will cost the government one hundred million dollars ($100,000,000).

This credit is available regardless of the income level of the home buyer. A millionaire who buys a newly constructed house this year will get a $10,000 gift from the government.

The Governor's move is another slap in the face to low-income Californians. In September 2008 the Governor used his line item veto to eliminate all renters' rebate funds. In January 2009, the Governor released his 2009 budget, again eliminating all renters' rebate funds. The renters' rebate is a longstanding program that provides a modest annual tax rebate check to low-income senior, blind and disabled renters and homeowners. According to the Governor, the rebate program could not be funded because the state lacked money to pay for it, a claim belied by his signing of the new home buyer tax credit.

Apparently, the Governor prefers to give $10,000 each to individuals who are well off enough to be buying new homes in the current economy, rather than continue a program that provides an annual $347.50 payment to low-income senior, blind and disabled Californians.


  1. When funds for the renters' rebate were cut by the Governor we heard from so many people who said that losing the renters' rebate was forcing them to choose between food, medicine, and paying their rent.
    How do you justify a $10,000 credit for those who can afford to buy brand new homes when others struggle to meet their basic needs?

  2. The fact is the Governator doesn't give a damn about low-income senior, blind and disabled Californians.
    This is a sign of great weakness.

  3. The governor is not intouch with the REAL EVERYDAY CALIF. WORKERS. He just took away the money that makes a giant difference weather you buy gas for your work car or food for your family.
    WAYTO GO JERK!!!!!! We see where your loyality lies, with the money not the people. I won't vote for you.

  4. The governor is a true Republican. That is what they do. He does not give a damn about poor people. Same old politics another, Bush!!!

    I will never vote for him on anything.
    He should have stuck to the movies.
    With his non speaking english self.

  5. A new study that just came out shows that more than one million California seniors are unable to make ends meet, further proof of how critical the renters' rebate is.

  6. Money for Ceo's, banks, the car industry, and the over-stretched multi-home buyers, but nothing for the renter's who sit on the sideline, while sentors in california, focus on tax breaks for the wealthy overstretched home-buyers. Why should I place 50-100k into a down-payment, and why should renters be ostracized, and not supported as a HOME-OWNER? We need to demand integration of rental housing, and EQUAL DEVELOPMENT of rental housing in ALL urban areas, including mandating structural seismic repairs, information to tenants/renters, and adequate funding for sustainable preservation of existing rental housing that should be on the local state or national regsiters. Demolition through neglect is part of this equation, and the need for money to be set aside for preservation and securing the stability of rental housing in the bay area critical to our future stake in the city and urban areas.

  7. In the old days we'd have a revolution over crap like this (not this alone, but the whole ball of wax.) These days people don't have that kind of courage and we're taught how wrong that'd be.

    I'm not advocating violence, just saying we at least need to be louder voices.

  8. It's so easy to a bad actor who become a governerwho smoke a $500 cigar evey day but taking my survival money.This is remind me the Nazi Germany,something is wrong with this Country we could not find a better person for this job because I'llbe back is not enough.