California $10,000 Tax Credit … Update
Friday, February 27th, 2009
***Update – 2010 California New Home Buyer Tax Credit Takes Effect 5/1/10 – Details Here***
On Thursday, February 26th, the Franchise Tax Board (FTB) announced that the $10,000 State Income Tax Credit for purchase of a newly constructed home in California would be based on a first come, first served, close of escrow priority. That means the $100 million allocation created by SB 15, will be utilized quickly. Many industry professionals now believe the credit will be exhausted by this summer.
This means that buyers need to act decisively and quickly if they want to take advantage of this stimulus benefit. Please read my earlier posts regarding the California and Federal Tax Credit form more particulars.
The FTB has not yet posted the “certification form” to be used for claiming the tax credit. They believe that form will be posted later today.
The FTB is also creating a report to help home buyers understand how quickly the tax credit is being used. When these tools are posted, I will provide you the links.
Remember, the California State Tax Credit ($10,000) will be applied on a first come, first served, close of escrow basis!
Yeah – I read that too – first come, first serve -
What I’ve yet to see however is a builder advertising the deal and trying to sell some homes. I’m sure it’s coming, but I would have expected all builders to be all over it this is something that warrants increased budgets KILL INVENTORY TIME IS HERE
What do you guys plan on doing Steve?
Jayson,
Step one is to educate our sales professionals to answer questions from our prospective purchasers. This step has been underway for the past week, and will continue as long as there are outstanding questions the FTB has not answered.
Step two is then to begin advertising the credit to the buying public. I think you will see the advertising begin this weekend.
Steve