Sacramento Bee: Date Clarified For $10,000 Tax Credit Eligibility
By Jim Wasserman
A $10,000 state tax credit for new-home buyers in California will begin for people who close escrow on or after March 1, the California Franchise Tax Board announced Tuesday."The date sold is the date of the close of escrow," said FTB spokeswoman Brenda Voet.
The announcement cleared up days of confusion among builders and people in varying stages of buying about eligibility for the tax credit. It wasn't initially clear whether it would be defined by the close of escrow or the date of signing the sales contract.
Among those happy to hear it defined as close of escrow were homebuyers Cristi and Peter Guglielmoni of Vacaville. Though the couple were scheduled to close escrow today, Arizona-based home builder Meritage Homes agreed to extend escrow to March 1 to make them eligible for the tax credit, said Cristi Guglielmoni. "I think it's fantastic," she said. "It makes a big difference."
Voet said the state agency will post tax credit details and procedures by Friday at a special section of its Web site, http://www.ftb.ca.gov.
"That will contain a purchase certificate for the sellers to use and download by the end of the week," said Voet. "There will be instructions on how to submit it, and procedures on how we will acknowledge it," she said. The site will also precisely define eligibility.
State lawmakers passed the tax credit as part of budget negotiations to close a $40 billion deficit and win the vote of Sen. Roy Ashburn, R-Bakersfield. The $100 million tax credit allocation could accommodate up to 10,000 home purchases and is on a first-come, first-served basis, Voet said.
The tax credit gives buyers who close escrow on or after March 1 and up to March 1, 2010, up to $3,333 off their taxes for each of the first three years after buying. First-time and move-up buyers alike are eligible and there are no income limits.
First-time buyer Scott Rhodes of Redondo Beach is to close escrow March 2 on a new home in Rancho Cucamonga and will score big. Along with the $10,000 state credit for new homes, he is also eligible for a new $8,000 federal tax credit for first-time buyers.
"The federal and state (credits) came in one-two punches," said Rhodes.
