Tax Credit for New Home Purchase

Tax credit amounts

California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. We will review applications and allocate credit on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available. We began issuing certificates of credit allocation on May 1, 2009. Please check this page for updates on the allocated and remaining credits available.

Important update (06/26/09):

As shown in the numbers below, we have reached $100 million in new home credit applications. Because many of these are duplicates, revised, or invalid, we plan to receive 12,000 applications. This will ensure we have more than enough valid applications to allocate the full $100 million. These additional applications will be subject to the availability of remaining credits.

Once we receive 11,000 applications, we will update this page each business day with the total number of applications received. We will no longer accept applications once we have received 12,000, and the fax service will be disconnected.

We will continue to report certificates issued on a weekly basis until the full $100 million has been allocated. We expect to complete processing all certificates in August. We will send a notification in response to all applications received, indicating the amount of credit allocated or denied.

In order to expedite the processing of applications, submit only one application per new home purchase. Do not send in applications before escrow closes. Applications cannot be accepted if escrow has not yet closed. Complete the application carefully and accurately.

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 began accepting applications for allocation of credit by fax only (916.845.9754), 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 expect it will take until August to process all the applications we received and mail credit allocation letters. Please be patient and do not send an application more than once.

Information taken from http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml