The following is an update for all of you looking to purchase a brand new home (new construction) this year to take advantage of the California $10,000 tax credit being offered. Unlike it's federal counterpart, this credit is not just for first time buyers, it's for everyone who purchases a never been lived in home this year. The state alloted $100,000,000 to this credit and will issue on a first come first served basis. The credit began just three weeks ago and already over 10% of the available money has been spoken for. If you are planning on taking advantage of this one, you may want to act quickly! Read below for the details from the franchise tax board website.
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We will update this information frequently. Please check this page often.
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.
We will accept applications for allocation of credit by fax only (916.845.9754), starting March 1, 2009; however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis. We will update this page as soon as we begin mailing credit allocation letters. We plan to begin mailing credit allocation letters no later than May 1, 2009. This delay is 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. Please be patient with us and do not send applications more than one time.
Tax credit amounts
California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available. Please check this page for updates on the allocated and remaining credits available.
| $0 |
| $100,000,000 |
Note: The remaining credit amount displayed above only reflects allocations processed. This amount will be updated once we begin mailing credit allocation letters, which is expected to commence by May 1, 2009. This amount does not include applications that have been received, but not yet processed.
Applications for New Home Credit received, but not yet processed as of 3/18/09
| 3/4/09 | 173 | $1,715,826 |
| 3/11/09 | 711 | $6,987,515 |
| 3/18/09 | 1,188 | $11,599,825 |
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. We will update the amount received, but not yet processed, on this webpage each Friday. As we approach the $100,000,000 limitation, we will update the reported amounts on a daily basis. 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.
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