The Franchise Tax Board (FTB) announced today that it will stop accepting applications for the new home tax credit at midnight tonight, Thursday, July 2, 2009.
New tax law allocated $100 million of tax credits made available to roughly 10,000 qualified buyers who on or after March 1, 2009, purchased a qualified principal residence that had never been occupied. This credit is equal to the lesser of five percent of the purchase price or $10,000. The buyer must reside in the new home for at least two years immediately following the purchase date.
To ensure that enough valid applications were received to properly allocate the full $100 million available for this tax credit, FTB accepted 12,000 applications. However, FTB will only issue approved credit certificates until the $100 million is exhausted. The credit is being allocated on a first-come, first-served basis.
For more information, visit FTB's Tax Credit for New Home Purchases webpage at www.ftb.ca.gov.