2010 California Tax Credit Receives Guidance from the FTB
Tuesday, March 30th, 2010
The Franchise Tax Board (FTB) has published their first important update on the regulatory process they intend to follow for administration of the 2010 California Tax Credit. The only notable clarification refers to the first time home buyer allocation process. Under the FTB update the referenced reservation system for the new home tax credit allocation will not be available to the first time homebuyer allocation process.
This is not a surprise, as the first time home buyer process only applies to homes from the resale market. The first time home buyers allocation will be based solely on the close of escrow and be administered on a first come first served basis.
The new home tax credit allocation will include a reservation process. The reservation system is allowed, but not required. In the circumstance where a first time home buyer is purchasing a newly constructed home, their tax credit allocation will come from the new home allocation monies.
