Assembly BillIntroducedRevenue and Taxation
AB 1714: Personal income tax: credit: first-time homebuyer program: required repairs.
What AB 1714 does, verified April 29, 2026
The bill provides a tax credit for homebuyers who use a first-time homebuyer assistance program. The credit is equal to 40% of the amount paid or incurred for required repairs, up to $25,000, for each taxable year beginning in 2028 and ending in 2033. This credit is only available once per property and per taxpayer per year. The bill also requires findings and reporting to ensure the tax credit achieves specific goals and objectives, and includes data collection requirements.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: In committee: Set, final hearing. Held under submission. (2026-04-27)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions8 total · showing 5
| Apr. 27, 2026 | In committee: Set, final hearing. Held under submission. |
| Apr. 06, 2026 | In committee: Set, second hearing. Referred to REV. & TAX. suspense file. |
| Mar. 24, 2026 | Re-referred to Com. on REV. & TAX. |
| Mar. 23, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Mar. 16, 2026 | In committee: Set, first hearing. Hearing canceled at the request of author. |
Latest bill textAmended version, March 23, 2026 · 908 words
| Amended IN Assembly March 23, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 1714
| Introduced by Assembly Member Tangipa |
February 04, 2026 |
An act to add and repeal Section 17053.45 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1714, as amended, Tangipa. Personal income tax: credit: first-time homebuyer program: required repairs.
The Personal Income Tax Law allows various credits against the taxes imposed by those laws.
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 40% of 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. The bill would prohibit a taxpayer from claiming more than one credit for a taxable year or more than one taxpayer from claiming the credit with respect to a property for a taxable year.
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.
This bill would include findings and reporting requirements in compliance with this requirement.
This bill would take effect immediately as a tax levy.
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.45 is added to the Revenue and Taxation Code, to read:17053.45.
(a) For(b) For purposes of this section:
(1) “Cosmetic improvements” means modifications to residential real property that are intended solely to improve the visual appearance or aesthetic appeal of the property and that do not affect the structural integrity, safety, habitability, or essential systems of the property.
(1)
(2)
“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. (2)
(3)
(A) “Qualified repair expenses” means amounts paid or incurred during the taxable year 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:(i) A lender appraisal.
(ii) A property inspection report required by the lender.
(iii) 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.
(B) “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.
(c) To be eligible for the credit allowed by this section, a taxpayer shall substantiate, in the form and manner prescribed by the Franchise Tax Board, all of the following:
(1) The repairs qualified repair expenses were required as a condition of closing the sale.
(2) The repairs qualified repair expenses were completed prior to or as part of the sale transaction.
(3) The purchaser utilized a first-time homebuyer assistance program administered by the California Housing Finance Agency.
(d) (1) A taxpayer shall claim no more than one credit allowed by this section in a taxable year.
(2) If real property for which qualified repair expenses are incurred is owned by more than one taxpayer, only one taxpayer shall claim the credit allowed by this section for the taxable year in which the qualified repair expenses are incurred.
(d)
(e) 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. up to five years.
(e)
(f) For the purposes of complying with Section 41, the Legislature finds and declares all of the following:
(1) 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.
(2) 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. allowed.
(3) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before December 1, 2033, 2034, to the Legislature, in compliance with Section 9795 of the Government Code.
(4) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.
(f)
(g) This section shall remain in effect only until December 1, 2033, and as of that date is repealed.
Text of AB 1714 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions