It was a nonrefundable tax credit. To claim it, you would use Form 540 and enter the credit code 219 on line 43 under the section titled Special Credits.
Using the Form 540, you figure your taxable income. Then you figure your tax and subtract allowable exemptions. The next section, Special Credits, is where the homebuyer credit goes. You subtract the sum of all the Special Credits claimed from the total tax calculated. If this results in a negative number (i.e. a credit) you put 0. This means you are only credited up to a max of the amount owed and any excess is not refunded.
