California running out of $10,000 tax credits - CNNMoney.com

CNN Money recently featured an article about the $10,000 tax credit available to California residents.

The article stated that "The state set aside $100 Million to help home buyers purchasing newly built homes, hoping to jump start the moribund residential-construction market. But only about 20% of the pot is left."

According to CA.Gov, the California Franchise Tax Board website, the number of applications received is significantly higher than the number of certificates for tax credits actually issued.

So in effect there is almost $70 Million of the $100 Million still available to be allocated. CNN's article assumes that all applications (processed and unprocessed) totalling $88 Million, will be approved.

Also, the article claims that "Unlike the federal first-time home-buyers tax credit, which is $8,000 or 10% of the home price, whichever is less, the California credit is not refundable."

This is factually incorrect - the $8000 tax credit is not refundable if the property purchased is used as the buyer's primary residence for at least 3 years.

Sorry CNN .... you need to check and correct your facts in this article.