NEW HOME CREDIT PROGRAM SHUTDOWN
PURPOSE OF BULLETIN
To inform staff beginning July 3, 2009, we no longer accept applications for the New Home Credit.
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 5% of the purchase price or $10,000. The total amount of the credit that may be allocated to all taxpayers shall not exceed $100 million and will be allocated by us on a first come, first served basis.
$100 MILLION CEILING HIT
As of July 2, 2009, we received over 12,000 applications, an amount determined to be more than enough to allocate the full $100 million of credit.
We expect to complete processing all certificates by the end of August. We will send a notification in response to all applications received, indicating the amount of credit allocated or denied.
FORM 3528-A AND PUBLICATION 3528
Form 3528-A, Application for New Home Credit, is no longer available on our website.
Publication 3528 will provide detailed instructions for buyers to claim the New Home Credit on their tax return. This publication will be available no later than December 31, 2009.
Taxpayers can visit 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, 8:00am to 5:00pm.