Calif. home purchase stimulus money nearly gone

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SACRAMENTO (AP) — Homebuyers have snapped up nearly all of $100 million in California tax credits designed to spur new home purchases.

The Franchise Tax Board says as of mid-June it had received more than 9,800 applications that would drain $95 million of the money. The board is accepting 12,000 applications, anticipating some will be duplicates or invalid.

The credit of up to $10,000 is for those who buy new homes between March 1, 2009, and March 1, 2010. The owner must live in the new home at least two years. The buyer has one week to file the credit application after close of escrow.

The board said Monday it expects to process the credit certificates by August.

The credit was included in a state budget in February.
Copyright 2009 The Associated Press.