CA Cutting Off New Home Buyers' Credits

Sacramento (myFOXla.com) - The Franchise Tax Board said it would stop taking applications for the tax credits at midnight Thursday.

The program offered $100 million in credits to roughly 10,000 consumers who buy homes that have never been occupied. The credit is equal to 5 percent of the purchase price or $10,000, whichever is less.

Buyers must occupy the homes for at least two years immediately following the purchase.

The credit is being allocated on a first-come, first-served basis to qualified applicants. It was part of the budget package passed by the Legislature in February to satisfy a demand by Sen. Roy Ashburn, R-Bakersfield.

The tax board has accepted 12,000 applications so far.