Homeowners in California received nearly $6 billion in state tax subsidies last year, according to a new report that also revealed a wide gap between state support for homeowners and renters.
The report from the California Housing Partnership, a nonprofit low-income housing advocate, found that homeowners in the state received billions in subsidies through being able to deduct interest on their mortgages and their property taxes from their state tax bills. The report determined that the single largest housing subsidy in 2017 was $3.9 billion for the mortgage interest deduction, which is the state’s version of a benefit that also applies to homeowners’ federal taxes.
State support for renters, however, was limited to a couple hundred million dollars for a $60 annual tax credit for low-income renters and state tax credits for developers to help finance low-income rental projects.
“This new analysis of state spending reveals what many have long suspected: When it comes to the California budget, wealthier homeowners are getting the lion’s share of the benefits, while renters get crumbs,” said Matt Schwartz, president and chief executive of California Housing Partnership, in a statement.
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