California's Franchise Tax Board announced details Monday onthe specific ins and outs of getting new state homebuyer tax credits up to $10,000. The explicit guidance follows passage last month's legislation setting aside $200 million in buyer tax breaks on a first-come, first-served basis.
The FTB, which is California's version of the Internal Revenue Service, advises that applications must be faxed only after the close of escrow. The close of escrow is the trigger date for being eligible for the tax credit.
More specifically, the tax agency notes that applications - and a copy of the escrow settlement statement - must be faxed within two weeks (14 calendar days) after the close of escrow.
The new program began May 1 and runs until the supply of credits is exhausted.The FTB estimates that up to 32,000 California buyers will be able to claim them. State lawmakers allocated $100 million for all buyers of new unoccupied homes and $100 million for first-time buyers of existing homes. Though controversial in a time of budget deficits, lawmakers and Gov. Arnold Schwarzenegger said it would create new residential construction jobs and trim the state's inventory of homes for sale.
More details from the FTB are at this link.