$10,000 California tax credit for new home purchases

A tax credit has been approved for people who buy brand new homes until March 1, 2010or when the $100 million dollars allocated has been exhausted, whichever comes first. It’s estimated that only about 10,000 home buyers will receive the credit.

The California tax credit is $10,000 or 5% of the home’s purchase price if the buyer certifies that they will live in the home for at least two years and that the home will be their principal residence. Buyers will receive the credit over three years or $3,333 per year.

Home buyers could qualify for both the federal and California credit programs if they meet all the requirements.

The Franchise Tax Board’s website will track how much of the $100 million is still available starting soon. http://www.ftb.ca.gov/