State's New Home Tax Credit Going Fast
Released: June 22, 2009
Sacramento –The Franchise Tax Board (FTB) announced today that the $100 million allocated by the state in new home tax credits will soon be gone.
As of June 17, 2009, FTB had received more than 9,800 applications claiming nearly $95 million. Because some of these applications are duplicates, revisions, or invalid, FTB plans to accept 12,000 applications. This will ensure enough valid applications will be available to allocate the full $100 million credit. However, FTB will only issue approved credit certificates until the $100 million is exhausted.
When 11,000 applications are received, FTB will update its Tax Credit for New Home Purchases web page at www.ftb.ca.gov each business day with the new totals. Once FTB receives 12,000 applications, the fax service will be disconnected.
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. To apply, an Application for New Home Credit [no longer available as of July 3, 2009] must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to FTB at 916.845.9754.
To expedite the processing of applications, qualified buyers are reminded to: submit only one application per new home purchase, only send in the application after escrow closes, and complete the application carefully and accurately. Applications received before escrow closes will be denied.
FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been allocated. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.