Credit extension in limbo
So, what's the newest on extending $10,000 state tax credits to more buyers of new unoccupied homes in California? The short answer: nothing.
As you'll remember, the Franchise Tax Board stopped taking applications July 3, while home builders and lawmakers tried to work out a deal to extend the tax credit to thousands more buyers. But lawmakers left for summer vacation without a deal.
None of three bills dealing with extending the credit - AB 765, SB 49 and SB X3 38 - shows signs of changes to make it happen. Staffers say to check back after Aug. 17. Meanwhile, the Franchise Tax Board has awarded certificates worth $70.9 million so far to 7,567 new homebuyers.
by Jim Wasserman of the SacBee
Doug's Take: I was very surprised to see the funds for the new home credit of $10,000 be snatched up so quickly. Because the program seemed to work so well, I think it would be beneficial for the state to find a way to extend the program. One major problem of the last few years has been the new homes having trouble selling because they have to compete with the price declines in the area. Well, resale homes in the area have bottomed out so far this year. If California can provide some more funds, it would continue to give a huge boost to the developers who are still hurting. I think this is one of the few good government ideas lately. I'll keep you posted if the state comes up with more funds to extend the program.