What Is My House Worth?

It’s expected that the California Legislature will extend a state tax credit on new homes due to the success of this program that has seen a boost in real estate sales.

A vote is expected before Friday, when the legislative session ends.

With this program, new home buyers can claim a credit on state income taxes of up to $3,333 a year for three year ($10,000 total).  On July 2, the Franchise Tax Board stopped taking applications, because more than 10,000 people had applied and they believed the entire allocated budget of $100 million was depleted.

Now the Legislature has a bill which would not increase the $100 million budget, but would authorize the use of $30 million that the board estimates is still available.  The mistake in calculation occurred because the board had wrongfully assumed that most buyers would use the entire $10,000 tax credit, but overlooked the fact that many people do not pay that much in state taxes.

Well, this is great news if you’re looking to buy a house!  So (assuming this new bill becomes approved)…get out there, find your dream home, and apply to receive some of the remaining $30 million!