State's New Home Tax Credit Gone
August 2009 - We stopped accepting applications for the new home tax credit at midnight, Thursday, July 2, 2009.
New tax law allocated $100 million of tax credits made available to approximately 10,000 qualified buyers who on or after March 1, 2009, and before March 1, 2010 purchased a qualified principal residence that had never been occupied. This credit is equal to the lesser of five percent of the purchase price or $10,000. The buyer must reside in the new home for at least two years immediately following the purchase date.
To ensure that enough valid applications were received to properly allocate the full $100 million available for this tax credit, FTB accepted 12,000 applications. However, we only issued approved credit certificates until the $100 million was exhausted. The credit was allocated on a first-come, first-served basis.
The application, Form 3528-A, Application for New Home Credit, is no longer available on our website. However, the instructions for buyers to claim the New Home Credit, Publication 3528, on their tax return will be available no later than December 31, 2009.
Taxpayers can visit ftb.ca.gov and search for new home credit, call us at 888.792.4900, or 916.845.4900 (not toll-free), Monday through Friday, 8 a.m. to 5 p.m.