NEW HOME CREDIT
PURPOSE OF BULLETIN
To inform staff that Senate Bill X2 15 enacted R&TC �17059. This allows taxpayers who purchase a qualified principal residence on or after March 1, 2009 and before March 1, 2010, a credit equal to the lesser of five percent of the purchase price or $10,000.
A qualified principal residence means a single-family residence, detached or attached, that has never been occupied and is purchased as the primary residence of the taxpayer for a minimum of two years and is eligible for the property tax homeowner’s exemption.
Sellers must certify that the home has never been occupied and qualified buyers must acknowledge they intend to immediately occupy the residence as their primary home for a period of two years. FTB 3528-A, Application for New Home Credit, must be submitted to us within one week after the close of escrow. [Note: this form is no longer available, as of July 3, 2009.]
The total amount of credit that may be allowed to all taxpayers shall not exceed $100,000,000, and will be allocated by us on a first-come, first-served basis.
We will notify buyers whether or not the credit has been allocated. The escrow person, on behalf of the buyer and seller will fax the completed FTB 3528-A to us at 916.845.9754. This is the only acceptable method to send the form, which will determine the order in when credits are allocated.
Publication 3528 provides detailed instructions for buyers to claim the New Home Credit on their tax return. This publication will be available by December 31, 2009.
Taxpayers go to ftb.ca.gov and search for New Home Credit. They may call us at 888.792.4900 or 916.845.4900 (not toll free), Monday through Friday 8 am to 5 pm.