NEW YORK (CNNMoney.com) — Time is running out for California residents wanting to take advantage of a $10,000 tax credit. The state set aside $100 million to help home buyers purchasing newly built homes, hoping to jump start the moribund residential-construction market. But only about 20% of the pot is left.

“We’re less than four months into it, and all the tax credits authorized are gone, or practically gone,” said Tim Coyle, a senior VP with the California Building Industry Association (CBIA).

The program launched in March and by June 3 nearly $24 million in tax credit certificates had already been issued, according to the state’s Franchise Tax Board.

That leaves nearly $76 million in credit available – but there are already numerous claims on that money. In fact, if all the submitted applications are approved, only $17.5 million will be left in the fund. And it has a run rate of about $10 million per week.

Click here to read the rest of the article.  http://money.cnn.com/2009/06/12/real_estate/10000_California_tax_credit/

Ok, stop the insanity.  No wonder California is broke.

There’s the $8,000 federal tax credit for first-time home buyers. And now California has upped the ante, offering a tax credit worth up to $10,000 to any home buyer, first time or not, of any income level, who buys a home between March 1, 2009 and March 1, 2010.

There’s just one hitch to the California tax credit: You have to buy a newly-constructed home that’s never been lived in.

Ok, let’s think about this.  As soon as the bill was signed building costs reportedly went up, as well as the need to comply to more environmental standards.  Builders are desperate to sell their inventory.  So of course it makes sense: up the costs for the houses (which they won’t advertise) and offer a $10k credit (which they will).  Sounds to me like the only people getting the credit is the homebuilders. 

The good news is that this State tax credit is good towards anyone of any income bracket. 

But wait, isn’t California broke?  Guess we will get an IOU for that as well.