$10,000 Tax Credit - California Residents ONLY

What, in a nutshell, is the $10,000 new home tax credit?

For the period from March 1, 2009 to February 28, 2010, inclusive, a taxpayer who purchases a qualified principal residence that has never been occupied may receive a tax credit of 5% of the purchase price or $10,000, whichever is less. The total new home tax credit for all taxpayers is $100 million.

Is a taxpayer who receives an $8,000 federal tax credit as a first-time homebuyer also eligible for the $10,000 new home credit under California law?

Yes. A first-time homebuyer as defined can potentially qualify for both the $8,000 tax credit under federal law as well as the $10,000 new home credit under California law.