|HOMEBUYER TAX CREDIT
|Amount of Tax Credit
||5% of purchase price, not to
exceed $10,000 for first-time
homebuyers or buyers of
properties that have never been
occupied. (See also Maximum
Credit for All Taxpayers.)
|Date of Purchase
||From May 1, 2010 to July 31, 2011,
but an enforceable contract must
be executed by December 31, 2010.
||Yes. Property purchased must be a
qualified principal residence and
eligible for the homeowner’s
exemption from property taxes (Cal.
Tax & Rev. Code § 218).
|Type of Property
||Single-family residence, whether
detached or attached.
||First-Time Homebuyer: Up to
$10,000 if the buyer (or buyer’s
spouse if any) has not owned a
principal residence during the three-
year period before date of
2. Never-Occupied Property: Up to
$10,000 for a principal residence if
the property has never been
previously occupied as certified by
|Maximum Purchase Price
||No repayment required if the buyer
owns and occupies the property for
at least two years immediately
following the purchase.
(not married to each other)
||Tax credit must be allocated
between eligible taxpayers based
on their percentage of ownership.
|Maximum Credit for All Taxpayers
||100 million for first-time
homebuyers and $100 million for
never-occupied properties, both on
a first-come-first-served basis.
|Reservations of Credit
||Yes. Buyer may reserve credit
before close of escrow for a
property that has never been
occupied by submitting a
certification signed by buyer and
seller stating they have entered
into an enforceable contract
between May 1, 2010 and
December 31, 2010, inclusive.
|When to Claim
||1/3 of total tax credit may be
claimed each year for 3 successive
years (e.g. $3,333 for 2010, $3,333
for 2011, and $3,333 for 2012).
||Franchise Tax Board (FTB).
|How to File
||Submit application to the FTB to
obtain Certificate of Allocation. The
FTB may prescribe additional rules
and procedures to carry out this
||Cannot be an acquisition from
related persons as defined; buyer
or spouse must be 18 years old;
buyer cannot be another taxpayer’s
dependent; credit is allowed for
only one qualified principal
residence; and credit allowed
cannot be a business credit under
Cal. Tax & Rev. Code § 17039.2.
||Cal. Rev. & Tax Code section
17059.1 (as added by Assembly Bill
|Date of Enactment
||March 25, 2010.
||FTB Web site at