$10000 New Home Tax Credit For California Home Buyers

Thinking of buying a new home in California? If so, there is good news from the State of California as the state government has initiated a $10,000 New Home Tax Credit if you purchase a qualifying new home between March 1, 2009 and February 28, 2010.

The California state government has allocated $100 million in funds to be paid to California home buyers for purchasing news homes within the state. This new home tax credit is designed to help boost the housing market and construction industry which are large components of the California economy.

Elements Of The California 10,000 New Home Tax Credit

• A home buyer must purchase a new home which has never been occupied. The seller must certify that the home is a new home.
  
  The California Revenue and Taxation Code Section: 17059.(b)(1) which defines what a qualifying property is for the purposes of the new home tax credit as: "qualified principal residence" means a single-family residence, whether detached or attached, that has never been occupied, that is purchased to be the principal residence of the taxpayer for a minimum of two years and is eligible for the homeowner's exemption under Section 218.


• The home must be purchased between March 1, 2009 and February 28, 2010.


• Home buyers do not have to be first time home buyers.


• Unlike the federal housing tax credit, the California new home tax credit has no income limitations.


• The amount of the tax credit is 5% of the home's purchase price up to $10,000 whichever is less. The tax credit will be paid to the home buyer over a three year period in equal parts and the home buyer must request the tax credit each year the are due for the tax credit.


• The home buyer must live in the home for at least 2 years or the tax credit must be repaid.


• The tax credit is available on a first come first served basis with approximately 10000 home buyers being able to qualify for the tax credit. As of May 1, 2009 approximately 4,200 Californians have applied for the new home tax credit.

You can find instructions for how to apply for the $10000 New Home Tax Credit and how to claim the tax credit at the California FTB web site: Visit Site