If you (or your client) purchased a new home (new construction) on or after March 1, 2009... Did you know that you can apply for a special tax credit?

California allocated $100,000,000 for this tax credit on a first-come, first-served basis for home buyers that purchased a newly constructed home on or after March 1, 2009. Once $100,000,000 has been allocated, the tax credit will no longer be available.

This morning California Franchise Tax Board posted an announcement that they would not accept applications after TONIGHT at midnight! What! 

How to apply

• Within one week (seven calendar days) after the close of escrow:
  • The seller must complete Part I of Form 3528-A, Application for New Home Credit, certifying that the home has never been occupied, and provide a copy to the buyer or escrow person.
  • The buyer will complete Parts II & III of Form 3528-A.
  • The escrow person, on behalf of the seller and buyer, will fax the completed Form 3528-A to FTB at 916.845.9754 and provide a copy to the buyer.
• Fax is the only delivery method that will be accepted and considered for credit allocation by FTB, as the date and time stamp on the fax will determine the order in which credits are allocated. The date and time applications are received may not be reviewed in any administrative or judicial proceeding.
• Fax only one completed application per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete application may delay or prevent credit allocation.
• Do not fax the application to FTB before escrow closes.
• Do not fax the application to FTB more than once. We will process the applications in the order received as quickly as possible.
• Escrow companies should only send one application per fax transmission.
• The buyer keeps a copy of the completed Form 3528-A for their records.
• The Form 3528-A is now available online as a fillable form. Simply fill in all required information, print the form, and sign. If you fill out the form by hand, please print numbers as clearly and neatly as possible using CAPITAL LETTERS and staying between the lines. The faxes can be very hard to read.

Please note this deadline does not apply to the $8,000 First Time Home Buyer tax credit... this is still in effect.  This only applies to folks who purchase newly constructed homes (never lived in before).

Here is a link to the announcement! >>

Please note in order to apply for the tax credit, escrow needs to have been closed!