How To Reserve Your California Tax Credit on a New Home

Reserving your tax credit on a new home in California has some specific criteria that you must follow in order to be eligible.

The FTB or Franchise Tax Board, will accept reservation requests for the New Home Credit by fax only beginning May 1, 2010.

Reservation Requests

If a buyer wishes to request a reservation, before the close of escrow:

1. The seller must complete Parts I, II, & III of Form 3549-RR, Reservation Request for New Home Credit.
2. The buyer completes Parts IV & V.
3. Fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB at 916.855.5577. If escrow has opened, it is best for the escrow person, on behalf of the buyer and seller, to fax the completed Form 3549-RR and the required pages of the purchase agreement to FTB and provide a copy to the buyer. If escrow has not opened, the buyer may fax it to FTB. (The buyer retains ultimate responsibility to ensure the completed reservation request and the required pages of the purchase agreement are submitted timely to the FTB.)
4. Do not fax the entire purchase agreement. Only fax the pages which show:
   1. Property address
   2. Buyer’s name
   3. Seller’s name
   4. Purchase price
   5. Deposit amount
   6. Buyer’s signature
   7. Seller’s signature

• Fax is the only delivery method as the date and time stamp on the fax will determine the order in which credits are reserved.
• Fax only one completed reservation request per residence with all qualified buyers listed.
• Do not fax the reservation request if the contract was entered into before May 1, 2010.
• Do not fax the reservation request to FTB after escrow closes or with the application (Form 3549-A).
• The buyer keeps a copy of the completed Form 3549-RR for their records.
• Use the online fillable Form 3549-RR. Simply fill in all required information, print the form, and sign.

To see the proper guidelines for the tax credit to make sure you are eligible to even make a request please read this article on the California Guidelines for Tax Credit.

Also, visit the FAQ – California Tax Credit often to see all the scenarios and comments posted by real people like you and me.

Tagged as: California, Tax Credit