The state of California is offering two new tax credits for the year 2010 for residents who purchase a home. However, the state has almost reached its quota of tax credits to allot. As such any Californian who has recently purchased a home is urged to apply for the California homebuyer credit before all the allocations are gone.

Unlike other types of tax credits, California’s Franchise Tax Board will pre-qualify taxpayers for the state’s homebuyer tax credit. Once the FTB has allocated all its tax credits, the program will be closed to new applicants. The state will allocate $100 million in tax credits for the purchase of a newly-built home and another $100 million in tax credits for first-time home buyers.  As of June 22, 2010, the state has already received applications for $91.4 million worth of first-time homebuyer credits and $41.7 million worth of new home buyer credits. The state will stop taking applications for these two credits once their quota has been reached.

You can monitor the status of these tax credits and how many applications have been received on the Franchise Tax Board’s home buyer tax credit web page.