I agree with you. At this time JOBS are the most important focus our legislators could have. I wish they took the time to understand the issues, as you have.

Steve

Right now, we need to keep more jobs coming so we can make the market improve more so homeowners can get out from under their mortgage and have some equity again.

That is really a question for your tax professional. I think the intent of the bill would be to allow new custom build, I’m just not sure the language is drafted clearly enough for me to say yes or no to your question.

You may also go on the Franchise Tax Board web site and submit a question to them about the tax credit. You may or may not get a direct response.

Steve

The 2010 California Tax Credit can be applied to both detached and attached single family homes. A condo is generally regarded as an attached single family home. So, assuming you meet all the other qualifications, you should be eligible if you close escrow on your condo after May 1, 2010.

Steve

The key for the California Tax Credit is how much state tax liability you have? The tax liability is the total amount of tax owed to the State. Even though you received a refund of $225, does not mean your state tax liability was not $4,000 and you simply had a withholding of $4,255. Does this help?

The tax credit will be applied against the total amount of tax owed the State. Any refund will depend upon how much withholdings you started with.

For a more detailed answer, please talk with your tax professional.

Steve

I am not clear how the tax credit would be applied. Would it reduce my taxable income?

I recently filed my taxes for 2009 and got a refund of $225 from the state.

If this scenario is the same for 2010, would the $3,333 annual tax credit be beneficial to me?

Yes, if you meet all the qualifications and close escrow on your California home between May 1, 2010 and June 30, 2010. In that circumstance, you would be eligible for both the Federal and California Tax Credits.

Steve