I agree with AK. The FTB info says that “since many taxpayers will not be able to utilize the entire tax credit” the $100MM will be reduced by only 70% or 57% for each tax credit given. i.e. For each person who claims a $10K New Home Credit, they’ll only reduce the $100MM by $7K. $5.7K will be deducted for each first time home buyer credit from the $100K. Presumably, the reduction for first time home buyers is lower because they are less likely to have enough enough to take the full $10K credit over three years.
Also, by saying only $100MM is allocated to each, the state is saying only 17,500 people ($100MM/$5.7K) will be able to apply for and get the first-time home buyer credit. Only 14,300 ($100MM/$7K) people will be able to take the new home credit.
