THURSDAY, JUNE 17, 2010 AT 4:39 P.M
Looking to snag that California first-time homebuyer tax credit? Better get cracking.
As of Thursday, 15,220 applicants had applied for $78.1 million in credits — nearly 80 percent of the $100 million available — after just six weeks, the Franchise Tax Board said. Last year, a similar tax-credit program also filled up quickly.
Spokeswoman Brenda Voet said at the current rate of 3,000 applicants per week, the full $100 million might be exhausted by July 1.
But Voet said the agency will accept at least 28,000 applications to account for duplicates and ineligible requests. Once credits are approved, homeowners will be guaranteed the rebates, even if the $100 million ceiling is slightly exceeded.
“Some people have panicked and sent in an application more than once, wanting to ensure it is received,” she said. “other people may have not completed the form as accurately as they wanted to, so we’ve had quite a few duplications.
Last year, she said 11,710 applications were received and 10,633 rebates were issued, including 298 in San Diego County, also for $100 million.
To qualify, a buyer must close escrow between May 1 and Jan. 1 and cannot have owned a principal residence for at least three years. The credits are awarded on a first-come, first-served basis to those who have closed escrow. Under last year’s program, 298 San Diego buyers qualified for the credit, Voet said.
This year, a second $100 million program is available to both first-timers and move-up buyers who purchase a newly built home as a principal residence. Credits may be reserved when buyers sign a purchase contract and then redeemed upon close of escrow before Aug. 1, 2011. The tax board said 3,700 applications for $12.8 million have been received so far.
For both programs the maximum credit is $10,000 or 5 percent of the purchase price, whichever is less. The typical credit applicant has qualified for $5,700 in credits.
Roger Showley: (619) 293-1286; roger.showley@uniontrib.com
