The state tax credit is for five percent of the purchase price of a brand new home.  It caps out at ten-thousand dollars.  Buyers who close escrow between this Sunday and March of 2010 are eligible.  But there’s only 100 million dollars to go around – and it’s first come, first-served. Layne Marceau with Shea Homes says he’s hoping that’ll add some urgency:

“Part of this is about getting people to you know, to act.  We want them to come to the sales offices, to feel good that this is time to buy, and let’s get this engine moving.”

Buyers will claim the credit over three years – at roughly 33-hundred dollars a year.   They’re only eligible if the home will be a primary residence.  The state credit is separate from a new, federal credit of eight-thousand dollars for first-time homebuyers.  That means some buyers may be eligible for up to 18-thousand dollars total in state and federal credits.