* Brand new, single family homes
* Never been occupied
* Be the buyer’s principal residence.

Californians can claim $3,333 per year for three years, beginning with the 2009 tax year. It aims to help new homes compete with the glut of foreclosures.

“Back in 1975, the U.S. Congress enacted a tax credit identical to this one, and it worked. It stimulated sales — doubled sales within a year,” said Tim Coyle, California Building Industry Association.”

The money is coming from a $100 million allocation. Once it is gone it is gone.