Income tax credit: foreclosed homes: mortgage interest deduction: minimum franchise tax.

The Personal Income Tax Law authorizes various credits against the taxes imposed by that law. This bill would, for taxable years beginning on or after January 1, 2009, and before January 1, 2012, allow a credit in an amount, not to exceed $3,000, that is otherwise equal to 2%, of the amount paid or incurred for the purchase as a primary residence of a foreclosed dwelling by a taxpayer whose gross income does not exceed a certain threshold. The Personal Income Tax Law allows a deduction for any qualified residence interest. This bill would, for taxable years beginning on or after January 1, 2010, and before January 1, 2012, allow that deduction only with respect to a qualified residence that is a principal residence, as provided. The Personal Income Tax Law and the Corporation Tax Law impose a specified minimum tax on partnerships, limited liability companies, and corporations. This bill would, for taxable years beginning on or after January 1, 2009, and before January 1, 2012, adjust those minimum tax amounts for inflation, as provided. This bill would take effect immediately as a tax levy.