Good news for the California real estate market today as Governor Arnold Schwarzenegger signed Assembly Bill 183 which gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers; $100 million for buyers of new, unoccupied homes and another $100 million for first-time buyers of existing homes. With the ending of federal tax credits and potential increases in the loan rates there is a growing fear that the recovery that we are currently seeing in the local real estate market will soon come to an end. The tax credits provided in AB 183 will help to mitigate those fears as it provides California home buyers with a tax credit of up to $10,000.