$10,000 State Tax Credit

The State of California has elected to make additional funds available for the State Tax Credit for first time home buyers and buyers of new construction homes.  The State credit is equal to 5% or the purchase price or $10,000, whichever is less.  Buyers need to apply with the Franchise Tax Board ("FTB") for the credit as soon as they close escrow. 

For details and more information, visit FTB’s webpage at www.ftb.ca.gov.  The FTB updates the estimated number of credits that have been reserved as of each Thursday.  Once you close escrow, do not delay--apply for the credit as soon as possible.