Personal income tax: credit: first-time homebuyer program: required repairs.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a tax credit for first-time homebuyers in California who purchase a home and are required to make repairs as a condition of the sale. The credit is 40% of repair costs, up to a maximum of $25,000 per year, and applies to repairs identified by a lender appraisal, property inspection, or health and safety requirement under a California Housing Finance Agency first-time homebuyer assistance program. Taxpayers can only claim one credit per year and only one taxpayer can claim the credit for a property.
Key provisions
- Allows a 40% tax credit for qualified repair expenses.
- The credit cannot exceed $25,000 per taxable year.
- Qualified repair expenses must be required as a condition of the home sale and funded by a first-time homebuyer assistance program.
- Repairs must be identified by a lender appraisal, property inspection, or health and safety requirement.
- Cosmetic improvements are not eligible for the credit.
- Taxpayers can claim only one credit per year.
- Only one taxpayer can claim the credit for a property.
- Allows carryover of unused credit for up to five years.
Who is affected
- First-time homebuyers
- California taxpayers
- California Housing Finance Agency
- Real estate sellers
- Lenders
Notable changes
- Establishes a new tax credit for required home repairs for first-time homebuyers.
Bill text
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Sponsors
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1 on record
Primary sponsor
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