February 16, 2010
Legislation has been introduced to give $10,000 credits to another 20,000 homebuyers in California. The question is whether the tax credits will be part of any new budget deal that needs Republican votes. Last year’s credits ran out in four months after being claimed by over 10,000 buyers of new homes in California. The legislation, Senate Bill X8 21, by Senator Ashburn, is a special session budget bill.
Assembly Bill 765, by Assemblywoman Anna Caballero, would extend the original tax credit to an estimated 4,300 more buyers of new homes. The bill recognizes that many taxpayers will not have sufficient tax liability to use the full credits awarded and therefore funds remain to expand the program. AB 765 stalled in the Senate last year but may be revived.