The State of California’s tax credit amount is 5% of the sales price, or $10,000, whichever is less.
Because the state thinks that not every buyer will qualify for the entire $10,000, they are only reducing the tally of available money by $5,700 per applicant, and will figure it out later. There will likely be some angry applicants at the end:
From the State of California:
The figures shown below are only estimates, based on small samples. The numbers are overstated as there will be duplicate, revised, and invalid applications included as we have not verified any of the applications. These estimates are only provided to give a general idea of the number of applications received and the amount requested for the First-Time Buyer Credit. We are showing 57% of the estimated requested credit since the $100 million cap will only be reduced by 57% of the credit allocated to the buyer. The amounts do not reflect actual amounts which will be allocated. These estimates will be updated each Thursday until we are sure that we have received more than enough applications to allocate the full $100 million. Once we determine that we have received sufficient applications to allocate the full $100 million, we will stop accepting applications for the First-Time Buyer Credit. Estimates for the New Home Credit will be provided once our computer system is completed.
Applications for received as of 05/04/10: 427
57% of Estimated Requested Credit: $2,350,708