Franchise Tax Board - No Longer Accepting Applications for Tax Credit for New Home Purchases

The Franchise Tax Board posted onto their site the other day the announcement that the $100 Million that was allocated for tax credit for new home purchases is no longer available. All monies have been allocated!

Important update (08/31/09): FTB No Longer Accepting Applications - $100 Million Has Been Allocated
As of July 3, 2009, we stopped accepting new home credit applications. As of August 31, 2009, we have allocated the entire $100 million.

As shown in the numbers below, we received more than 12,000 applications since many were duplicates, revised, or invalid. This ensured we had more than enough valid applications to allocate the full $100 million. These additional applications were subject to the availability of remaining credits.

We began accepting applications for allocation of credit by fax only on March 1, 2009. We began processing the applications on a first-come, first-served basis, on May 1, 2009. The processing delay was necessary to allow us time to develop a system to capture and verify the application information, allocate the credits, and send the credit allocation letters.

We finished processing the last applications on August 31, 2009. All applicants should receive notification, indicating the amount of credit allocated or denied, no later than September 11, 2009.

This tax credit was 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.

 

So what does this mean for consumers and Realtors?

Only time with tell. Many people were able to take advantage of this tax credit which hopefully helped to improve the real estate market.

To read the complete press release from the FTB, click here. 

Something to check out too, is the Treasury Highlights Recovery Act Impact - this came out 9/4/09 and this report details cumulative, state-by-state data on Treasury's Recovery Act Programs, including $66.1 Billion in tax benefits to date for individuals, families, and businesses.

posted by Katie Lance, Marketing Manager, Empire Realty Associates