California Tax Credit for New Home Purchases Info

California Legislators have approved a Tax Credit of up to $10,000 for new homes, including real and personal property manufactured homes, purchased on or after March 1, 2009 and before March 1, 2010. Qualified Home Buyers and who purchase a Qualified Principal Residence/New Home may apply for a tax credit equal to equal five percent of the purchase price or $10,000, whichever is less. The available credit allocated by the State is $100,000,000 and will be allocated on a first-come first-served basis.

Applications for the allocation will be accepted by the Franchise Tax Board (FTB) for escrows that have closed on or after March 1, 2009. The Franchise Tax Board has posted detailed procedures on their website and recommends that interested parties check their site frequently for updates. (Source: CMHI)