We Realtors don't sell many of the newly built homes that are are impacted by this, but for first-time home buyers wanting to take advantage of the state’s $10,000 tax credit, there may be less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only about 20 percent of the program’s funding is left.
The program started in March, and as of June 3 nearly $24 million in tax credit certificates already had been issued, according to the state’s Franchise Tax Board, leaving nearly $76 million in credit available. Many applications are waiting for approval. If all of the submitted applications are approved, only $17.5 million would remain in the fund.
The California state legislature is considering adding another $200 million to the program...in fact, a bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate. However, securing approval may be difficult.
And does it make sense, considering the state’s estimated $24 billion budget deficit?
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