As of July 3, 2009, the franchise tax board in CA is no longer accepting new home credit applications. There has been discussion to expand this program and it has been a major factor in helping the real estate industry rebound in recent months. Factor in the $8000 federal tax credit for 1st time buyers and it's easy to see why buyers are jumping off the fence.
As shown in the numbers below, they have received over $100 million in new home credit applications and more than 12,000 applications. This means the $100 million originally allocated for the program has been used up. Any additional applications will be subject to the availability of remaining credits. The state will continue to report certificates issued on a weekly basis until the full $100 million has been allocated and they expect to complete processing all certificates in August and notifications in response to all applications received, indicating the amount of credit allocated or denied.
This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
California began accepting applications for allocation of credit by fax only on March 1, 2009. The state began processing the applications on a first-come, first-served basis, on May 1, 2009.
Certificates issued for New Home Credit through 07/01/09:
|5/13/09||331||$ 3,246,532||$ 96,753,468|
|5/20/09||1,023||$ 9,942,884||$ 90,057,116|
|5/27/09||1,749||$ 16,699,924||$ 83,300,076|
|6/3/09||2,502||$ 23,822,657||$ 76,177,343|
|6/10/09||3,219||$ 30,465,953||$ 69,534,047|
|6/17/09||3,943||$ 36,857,428||$ 63,142,572|
|6/24/09||4,808||$ 44,947,157||$ 55,052,843|
|7/1/09||5,503||$ 51,442,798||$ 48,557,202|
The amounts below reflect applications received, which include both processed and unprocessed applications.
Applications for New Home Credit received through 07/02/09:
This reflects the total amount of credit reported on applications received as of the date indicated. This amount has not yet been verified and may include duplicate, incomplete, and invalid applications. This amount is provided for informational purposes and does not reflect the actual amount to be allocated. Keep in mind that all applications will be processed on a first-come, first-served basis, based on the date received by fax only.
California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.