While the federal homebuyer credit program is in its last few months, California has extended its $10,000 credit for first time buyers and those who buy a newly constructed home in the state between May 1, 2010 and December 31, 2010.  The California Franchise Tax Board has $100 million for each of these programs and will allow for a credit of 5% of the purchase price up to $10,000.  Equal amounts will be applied over three tax years.

To qualify, the home may not be purchased from a relative and the home buyer cannot be a dependent of someone else for tax purposes. The credit will be available first come, first served.

Last year the credit was so popular the program ran out of money within four months and helped 10,659 people buy homes.