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In the News... More News

Home-buyer tax-credit program cut off by state

July 3, 2009

California is cutting off applications for a tax credit that was designed to promote sales of new homes.

The Franchise Tax Board said it would stop taking applications for the tax credits at midnight Thursday.

The program offered $100 million in credits to about 10,000 consumers who buy homes that have never been occupied. The credit is equal to 5% of the purchase price or $10,000, whichever is less.

Buyers must occupy the homes for at least two years immediately after the purchase.

The tax board expects to have received 12,000 applications.

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