A new bill signed by California Gov. Arnold Schwarzenegger hopes to help sell California's vacant homes as well as give new construction a boost by extending a $10,000 state tax credit for first-time homebuyers.

This new bill provides a state tax credit to first-time homebuyers who buy new or existing homes from May 1 until the end of 2010. Homebuyers can claim 5 percent of the purchase price against their California taxes, or up to $10,000.

This new bill makes another $100 million available for buyers of new homes and $100 million for those who buy existing homes. According to the Franchise Tax Board, the state allocated that credit to 10,569 applicants after receiving more than 12,000 applications.

The governor indicated that the expanded tax credit will help cities and counties get more properties back on the tax roll and put more people to work.

The Governor also vetoed a tax bill that would have provided relief to those who had mortgage debt forgiven in 2009. The governor said in his veto message that he could not support the bill because lawmakers inserted a tax penalty opposed by businesses. He asked the Legislature to send him a bill dealing solely with mortgage debt forgiveness so he can sign it.