$100 Million Exhausted for CA New Home Tax Credit
As of August 31st of 2009, all $100,000,000.00 has been allocated! California’s “Tax Credit for New Home Purchase” is no longer available. A program that was scheduled to be available from March 2009 to as late as March of 2010 has received over 12,000 applications and is closing it’s doors to new applicants. The tax credit of 5% of the purchase price or $10,000, whichever is less, will be disbursed over the course of 3 years to the lucky 10,000+ recipients who are required to live in their newly constructed home as their primary residence for a minimum of 2 years. Interestingly enough, the program had no income restriction so the wealthiest of the wealthy were able to take advantage of this tax incentive. Given that most wealthy Californians already have numerous tax incentives and write offs, especially in this economy, it’s strange and unfortunate that the State of California did not limit this program to under a specific annual income or purchase price.
