The California First-time Buyer Tax Credit has ended, but the New Home Credit still is available.
Earlier this month, the California Franchise Tax Board announced it is no longer accepting applications for the state's First-time Buyer Tax Credit, but it will continue to accept applications for the state's New Home Tax Credit until the $100 million allocation is exhausted.
If your clients purchased a previously unoccupied home in California on or after May 1, 2010, and before Jan. 1, 2011, they may qualify for a tax credit of up to $10,000. Check out the California Franchise Tax Board's Web site to learn more about this tax credit, how to submit applications, and who's eligible to apply.
KEEP IN MIND, they are currently only accepting applications for the New Home Credit. Any applications received after August 15, 2010 for the First-Time Buyer Credit will be denied. (Updated 08/19/10)
The New Home Credits are available only for purchases that close escrow on or after May 1, 2010. These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence.
Again, for details on this existing tax credit, please visit the California Franchise Tax Board's Website to learn more about it, how to submit applications, and who is eligible to apply.