On Thursday, California Gov. Arnold Schwarzenegger signed AB 183, which will provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a newly-built home.

“I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,” Gov. Schwarzenegger said.

The bill, authored by assembly member Anna Caballero (D-Salinas) and Sen. Roy Ashbum (R-Bakersfield), gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers—$100 million for first-time buyers of existing homes and another $100 million for buyers of new, unoccupied homes.

Available for homes purchased between May 1, 2010 and December 31, 2010, the tax credit will be equal to 5 percent of the purchase price, up to $10,000. It will be given on a first-come, first-served basis and will be applied in equal amounts over a period of three taxable years. To qualify, the buyer must not be a dependent and must purchase a home that does not belong to a relative.

“The tax credit will help push prospective buyers off the fence, clear out inventory, and jump-start the homebuilding industry, which will help create jobs and reinvigorate the state’s economy,” said Liz Snow, president and CEO of the California Building Industry Association.

Gov. Schwarzenegger fought hard to extend and expand the homebuyer tax credit after its successful run in 2009. That $100 million tax credit was approved in February 2009 and ran out in just four months after 10,659 Californians claimed the credit.

This legislation is part of the larger California jobs initiative that Gov. Schwarzenegger proposed in his State of the State address in January to create jobs and stimulate the economy. The newly-extended homebuyer tax credit is the second piece of this initiative to be approved by the legislature.

“Creating jobs is my number one priority, and I am glad that I have been able to sign two job-creating bills in two days,” Gov. Schwarzenegger said. “I applaud the legislature for their great work and encourage them to keep it up and pass the remaining job-creating elements of my California jobs initiative.”