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<ns0:Id>20250AB__171499INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-04</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Tangipa</ns0:AuthorText>
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<ns0:Name>Tangipa</ns0:Name>
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<ns0:Title> An act to add and repeal Section 17053.45 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. </ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Personal income tax: credit: first-time homebuyer program: required repairs.</ns0:Subject>
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<html:p>The Personal Income Tax Law allows various credits against the taxes imposed by those laws.</html:p>
<html:p>This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2028, and before January 1, 2033, in an amount equal to the amount paid or incurred, not to exceed $25,000, during the taxable year for repairs that are required as a condition of closing the sale of real property to a purchaser utilizing a first-time homebuyer assistance program, as specified.</html:p>
<html:p>Existing law requires any bill authorizing a new tax expenditure, as defined, to include tax credits, to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.</html:p>
<html:p>This bill would include findings and reporting requirements in compliance with this requirement.</html:p>
<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 17053.45 is added to the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:Num>17053.45.</ns0:Num>
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(a)
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For each taxable year beginning on or after January 1, 2028, and before January 1, 2033, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 100 percent of the amount paid or incurred during the taxable year for qualified repair expenses by a taxpayer. The credit shall not exceed twenty-five thousand dollars ($25,000) per taxable year.
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<html:p>
(b)
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For purposes of this section:
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<html:p>
(1)
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“First-time homebuyer assistance program” means any program under Chapter 11 (commencing with Section 51500) or Chapter 12 (commencing with Section 51520) of Part 3 of Division 31 of the Health and Safety Code.
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(2)
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(A)
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“Qualified repair expenses” means amounts paid or incurred by the seller for repairs that are required as a condition of closing the sale of real property to a purchaser utilizing a first-time homebuyer assistance program administered by the California Housing Finance Agency, including repairs identified by any of the following:
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(i)
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A lender appraisal.
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(ii)
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A property inspection report required by the lender.
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<html:p>
(iii)
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Any health and safety requirement imposed as a condition of financing under a first-time homebuyer assistance program administered by the California Housing Finance Agency.
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<html:p>
(B)
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“Qualified repair expenses” does not include cosmetic improvements,
renovations, or upgrades not required as a condition of financing, including, but not limited to, remodeling, landscaping, or aesthetic enhancements.
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(c)
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To be eligible for the credit allowed by this section, a taxpayer shall substantiate, in the manner prescribed by the Franchise Tax Board, all of the following:
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(1)
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The repairs were required as a condition of closing the sale.
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<html:p>
(2)
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The repairs were completed prior to or as part of the sale transaction.
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<html:p>
(3)
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The purchaser utilized a first-time homebuyer assistance program administered by the California Housing Finance Agency.
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<html:p>
(d)
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If the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net
tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
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<html:p>
(e)
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For the purposes of complying with Section 41, the Legislature finds and declares all of the following:
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(1)
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The specific goal, purpose, and objective of the tax credit allowed by this section is to reduce failed transactions and expand access to homeownership by offsetting unavoidable repair costs that disproportionately affect older housing stock and first-time buyers.
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(2)
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The performance indicators for the Legislature to use when measuring whether the tax expenditure meets the goals, purposes, and objectives shall be the total number of returns claiming the credit and the aggregate dollar amount of credits claimed.
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(3)
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The Franchise Tax Board
shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2033, to the Legislature, in compliance with Section 9795 of the Government Code.
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(4)
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The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.
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(f)
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This section shall remain in effect only until December 1, 2033, and as of that date is repealed.
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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