The New Tax Credit's Not All It's Cracked Up To Be

There's so much talk around about the California State Tax Credit, that I thought it was time to clear up any misconceptions.
Some home buyers feel that if they get into contract on a house this month, they will be automatically eligible for both State and Federal Credits....not so... in fact it may signal an automatic audit.
The limit on funds from the State ($100 million, and when that runs out, it's over) is not the only limitation on the California credit. These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
This is not the only complication. Why am I not surprised?
For more detail, go to the Franchise Tax Board site.