$10,000 CA Home Buyer Tax Credit
New home/first-time buyer tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011 (pursuant to an enforceable contract executed on or before December 31, 2010).
These tax credits are limited to the lesser of 5% of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
Tax credits will be allocated on a first-come, first-served basis. It is expected to take 3-6 months to notify taxpayers after an application or reservation is received. Estimates, based on sampling, of the number of First-Time Buyer applications and the related credit amounts that have been received beginning May 6, 2010 will be provided. Information about the New Home Credit will be posted mid-July.