Shortly after noon today, the California State Senate voted 35-1 to extend a popular $10,000 tax credit for buyers of new unoccupied homes in California to another 4,300 buyers. It goes back to the Assembly now for a second vote. But the near-unanimous approval of the idea – heavily favored all year by the Legislature – gives it a good shot. The governor has also long liked the tax credit as a boost for the construction sector of the economy.
The bill had long been carried by Assemblywoman Anna Caballero, D-Salinas, as AB765. But as part of budget machinations in the Senate, it was folded into SBX3 37 with Sen. Roy Ashburn, R-Bakersfield as the new author and Caballero as a co-author.
Essentially the legislation, if it clears all the hurdles and receives final approval, will start the clock running again and giving people who close escrow on new unoccupied homes after its effective date a shot at receiving the credit – up to $10,0000 over three years.
But it shuts out people who have closed escrow since the Franchise Tax Board cut off applications on July 2. Already, more than 10,600 California buyers have been approved to get the cut.
Home builders called it a key sales tool during the spring and summer – and cited its absence as a key reason for slumping sales during the third quarter.
