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Friday, August 06, 2010

California to stop accepting First-Time Homebuyer Tax Credit Applications on Aug 15th

by Calculated Risk on 8/06/2010 09:20:00 PM

Earlier employment posts today (with many graphs):

  • July Employment Report: 12K Jobs ex-Census, 9.5% Unemployment Rate for graphs of unemployment rate and a comparison to previous recessions.
  • Employment-Population Ratio, Part Time Workers, Unemployed over 26 Weeks
  • Employment Report: Temporary Help and Diffusion Index

    From the California Franchise Tax Board today: Last Chance to Apply for State’s First-Time Buyer Tax Credit
    The Franchise Tax Board (FTB) announced today that it will stop accepting applications for the First-Time Buyer Credit at midnight Sunday, August 15, 2010.

    As of August 4, FTB has received 31,460 applications. Because some of the applications are invalid or duplicates, FTB will continue to accept them through August 15, to ensure that enough valid applications are received to properly allocate the full $100 million of tax credit. FTB estimates that it can award approximately 17,500-20,000 credit certificates to unique and valid applicants. However, once the funds are exhausted, any remaining applications will be denied.
    California homebuyers still have time to qualify for the state’s other $100 million home tax credit for the purchase of a new home. The New Home Credit is available for taxpayers who purchase (close escrow) a new home on or after May 1, 2010, and before August 1, 2011, as long as they enter into an enforceable contract executed before January 1, 2011. The seller must certify that the home has never been previously occupied.
    Here are tables with the number of applications received so far.

    It appears that the first time homebuyer tax credit allocation was exhausted over a month ago, and it is very unlikely that anyone applying today will receive a credit. The new homebuyer credit is still available, but probably for not much longer.