Buy New Construction in California, Receive $10,000 State Tax Credit…

 Governor Schwarzenegger

New Tax Credit for New Construction Purchases between March 1, 2009, and March 1, 2010

For full description of program, click here…
For a copy of  Form 3528-A, click here…

Per the California Franchise Tax Board…

California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available.

For updates on the allocated and remaining credits available, click here…

Starting March 1, 2009, we will accept applications for allocation of credit by fax only… (916) 845.9754…  however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis. We will update this page as soon as we begin mailing credit allocation letters. We plan to begin mailing credit allocation letters no later than May 1, 2009. This delay is necessary to allow us time to develop a system to capture and verify the application information, allocate the credits, and send the credit allocation letters. Please be patient with us and do not send applications more than one time. (Updated 03/06/09)

Long and short…
This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.

Qualified Buyers…
A taxpayer who purchases 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 that is eligible for the homeowner’s exemption under California Revenue and Taxation Code Section 218.

Qualified Principal Residence/New Home…
A qualified principal residence means a single-family residence, whether detached or attached, that has never been occupied and is purchased to be the principal residence of the taxpayer for a minimum of two years and is eligible for the property tax homeowner’s exemption.

Quotes from BusinessWeek…
For full Business Week article, click here…

Says Layne Marceau, President Of Shea Homes’ Northern California Division…

This is something that our industry has been desiring to have for quite some time…” “… homebuilding is an economic engine. The whole intent here is to stimulate sales activity, the ability to start housing projects again, get the state economic engine moving again. We believe the housing industry is the catalyst to do that.”

Senior VP for Government Affairs for The California Building Industry Association, Tim Coyle states…

“Already, With The News Of This Tax Credit Being Authorized, We’re Beginning To See Interest.” “What we’ve been missing in the market place for the last couple of years are people … Already, with the news of this tax credit being authorized, we’re beginning to see interest among those people who we desperately need to have confidence to return back to housing markets where they haven’t been for so long. We think this tax credit will do that.”

“Back in 1975, the U.S. Congress enacted a tax credit identical to this one and it worked. It stimulated sales, doubled sales within a year.”