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By Doug Reynolds | Agent in Sacramento County, CA

Extension of new-home buyer tax credit fails to pass

Legislation aiming to extend California's maximum $10,000 new home buyer tax credit to several thousand more buyers has stalled, failing to pass during a frantic weekend rush to adjournment by the state Legislature.

The bill, AB 765, was among those pushed aside by bigger final-hour statewide issues, backers said Monday. "With the prison reform package still being negotiated and water discussions going on, things like that kind of got pushed to the back," said Willie Armstrong, chief aide to Assemblywoman Anna Caballero, D-Salinas.


The bill's status is unclear. Armstrong said it could receive a vote during upcoming special sessions being considered later this year.  But that provides little certainty to first-time new-home buyers hoping to combine a state tax credit up to $10,000 with a federal $8,000 home buyer tax credit. The federal tax credit expires Nov. 30.

California's home-building industry had aimed to extend the credit to at least another 4,300 home buyers after the state's Franchise Tax Board estimated the average tax credit would be $7,000, not the full $10,000.

Comments

By Bob Gibbs,  Mon Sep 14 2009, 15:10
It's to bad that it did not pass but in the bay area we are seeing sales pick up without it. I'm usually for helping people buy homes but it seems as if there are enough buyers who don't care about the credit to make it worth inacting.
By Doug Reynolds,  Thu Oct 8 2009, 14:27
I agree with you but this is for the NEW home tax credit. The discussion is that, there is going to be money left over from the California new home credit and they are deciding whether to make that money available again. Probably the fairest thing to do is go back to all of the buyers right after they stopped taking applications and reimburse them the credit. But we'll see what happens, our state has a lot of problems to work out.

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