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| 1 | + | Amended IN Assembly April 23, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2922Introduced by Assembly Member GipsonFebruary 16, 2018 An act to add and repeal Sections 17053.80 and 23680 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2922, as amended, Gipson. Income taxes: credits: qualified developer: affordable housing.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, in an amount, determined by the California Tax Credit Allocation Committee, amount equal to 50% of the amount that is paid or incurred by a taxpayer to a qualified developer for the development of a qualified project, as defined, not to exceed an aggregate amount of $5,000,000 per year. but that does not exceed a specified amount per taxpayer per qualified project. The bill would also limit the aggregate amount of the credit, as specified.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17053.80 is added to the Revenue and Taxation Code, to read:17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity, if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23680 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer.(g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(i)(g) Section 41 does not apply to the credit allowed by this section.SEC. 2. Section 23680 is added to the Revenue and Taxation Code, to read:23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.80 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the tax, the excess credit may be carried over to reduce the tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. (g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.(2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) The credit may be assigned among members of the same combined report as provided by Section 23663.(i)(g) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(j)(h) Section 41 does not apply to the credit allowed by this section.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
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| 3 | + | Amended IN Assembly April 23, 2018 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 2922Introduced by Assembly Member GipsonFebruary 16, 2018 An act to add and repeal Sections 17053.80 and 23680 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2922, as amended, Gipson. Income taxes: credits: qualified developer: affordable housing.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, in an amount, determined by the California Tax Credit Allocation Committee, amount equal to 50% of the amount that is paid or incurred by a taxpayer to a qualified developer for the development of a qualified project, as defined, not to exceed an aggregate amount of $5,000,000 per year. but that does not exceed a specified amount per taxpayer per qualified project. The bill would also limit the aggregate amount of the credit, as specified.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
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| 5 | + | Amended IN Assembly April 23, 2018 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly May 02, 2018 | |
| 8 | 7 | Amended IN Assembly April 23, 2018 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill No. 2922 | |
| 13 | 12 | ||
| 14 | 13 | Introduced by Assembly Member GipsonFebruary 16, 2018 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Member Gipson | |
| 17 | 16 | February 16, 2018 | |
| 18 | 17 | ||
| 19 | 18 | An act to add and repeal Sections 17053.80 and 23680 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 20 | 19 | ||
| 21 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 22 | 21 | ||
| 23 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | AB 2922, as amended, Gipson. Income taxes: credits: qualified developer: affordable housing. | |
| 26 | 25 | ||
| 27 | - | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, | |
| 26 | + | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, in an amount, determined by the California Tax Credit Allocation Committee, amount equal to 50% of the amount that is paid or incurred by a taxpayer to a qualified developer for the development of a qualified project, as defined, not to exceed an aggregate amount of $5,000,000 per year. but that does not exceed a specified amount per taxpayer per qualified project. The bill would also limit the aggregate amount of the credit, as specified.This bill would take effect immediately as a tax levy. | |
| 28 | 27 | ||
| 29 | 28 | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. | |
| 30 | 29 | ||
| 31 | - | This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, | |
| 30 | + | This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, in an amount, determined by the California Tax Credit Allocation Committee, amount equal to 50% of the amount that is paid or incurred by a taxpayer to a qualified developer for the development of a qualified project, as defined, not to exceed an aggregate amount of $5,000,000 per year. but that does not exceed a specified amount per taxpayer per qualified project. The bill would also limit the aggregate amount of the credit, as specified. | |
| 32 | 31 | ||
| 33 | 32 | This bill would take effect immediately as a tax levy. | |
| 34 | 33 | ||
| 35 | 34 | ## Digest Key | |
| 36 | 35 | ||
| 37 | 36 | ## Bill Text | |
| 38 | 37 | ||
| 39 | - | The people of the State of California do enact as follows:SECTION 1. Section 17053.80 is added to the Revenue and Taxation Code, to read:17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, | |
| 38 | + | The people of the State of California do enact as follows:SECTION 1. Section 17053.80 is added to the Revenue and Taxation Code, to read:17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity, if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23680 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer.(g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(i)(g) Section 41 does not apply to the credit allowed by this section.SEC. 2. Section 23680 is added to the Revenue and Taxation Code, to read:23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.80 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the tax, the excess credit may be carried over to reduce the tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. (g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.(2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) The credit may be assigned among members of the same combined report as provided by Section 23663.(i)(g) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(j)(h) Section 41 does not apply to the credit allowed by this section.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 40 | 39 | ||
| 41 | 40 | The people of the State of California do enact as follows: | |
| 42 | 41 | ||
| 43 | 42 | ## The people of the State of California do enact as follows: | |
| 44 | 43 | ||
| 45 | - | SECTION 1. Section 17053.80 is added to the Revenue and Taxation Code, to read:17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, | |
| 44 | + | SECTION 1. Section 17053.80 is added to the Revenue and Taxation Code, to read:17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity, if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23680 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer.(g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(i)(g) Section 41 does not apply to the credit allowed by this section. | |
| 46 | 45 | ||
| 47 | 46 | SECTION 1. Section 17053.80 is added to the Revenue and Taxation Code, to read: | |
| 48 | 47 | ||
| 49 | 48 | ### SECTION 1. | |
| 50 | 49 | ||
| 51 | - | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, | |
| 50 | + | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity, if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23680 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer.(g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(i)(g) Section 41 does not apply to the credit allowed by this section. | |
| 52 | 51 | ||
| 53 | - | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, | |
| 52 | + | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity, if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23680 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer.(g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(i)(g) Section 41 does not apply to the credit allowed by this section. | |
| 54 | 53 | ||
| 55 | - | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, | |
| 54 | + | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity, if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23680 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer.(g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(i)(g) Section 41 does not apply to the credit allowed by this section. | |
| 56 | 55 | ||
| 57 | 56 | ||
| 58 | 57 | ||
| 59 | - | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, to | |
| 58 | + | 17053.80. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the net tax, as defined in Section 17039, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project. | |
| 60 | 59 | ||
| 61 | 60 | (b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request. | |
| 62 | 61 | ||
| 63 | 62 | (2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project. | |
| 64 | 63 | ||
| 65 | 64 | (3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project. | |
| 66 | 65 | ||
| 67 | 66 | (4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year. | |
| 68 | 67 | ||
| 68 | + | (b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee: | |
| 69 | + | ||
| 70 | + | ||
| 71 | + | ||
| 72 | + | (1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity, if applicable. | |
| 73 | + | ||
| 74 | + | ||
| 75 | + | ||
| 76 | + | (2)The state of incorporation or organization, if applicable. | |
| 77 | + | ||
| 78 | + | ||
| 79 | + | ||
| 80 | + | (3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number. | |
| 81 | + | ||
| 82 | + | ||
| 83 | + | ||
| 84 | + | (4)Contact information for the applicant, including all of the following: | |
| 85 | + | ||
| 86 | + | ||
| 87 | + | ||
| 88 | + | (A)Address. | |
| 89 | + | ||
| 90 | + | ||
| 91 | + | ||
| 92 | + | (B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person. | |
| 93 | + | ||
| 94 | + | ||
| 95 | + | ||
| 96 | + | (C)Phone number or numbers. | |
| 97 | + | ||
| 98 | + | ||
| 99 | + | ||
| 100 | + | (D)Email address. | |
| 101 | + | ||
| 102 | + | ||
| 103 | + | ||
| 104 | + | (5)Details about the project | |
| 105 | + | ||
| 106 | + | ||
| 107 | + | ||
| 108 | + | (6)The amount of credit requested. | |
| 109 | + | ||
| 110 | + | ||
| 111 | + | ||
| 112 | + | (7)The proposed taxable years for which the applicant is requesting the credit. | |
| 113 | + | ||
| 114 | + | ||
| 115 | + | ||
| 116 | + | (c)The California Tax Credit Allocation Committee shall do all of the following: | |
| 117 | + | ||
| 118 | + | ||
| 119 | + | ||
| 120 | + | (1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information: | |
| 121 | + | ||
| 122 | + | ||
| 123 | + | ||
| 124 | + | (A)The scope of project. | |
| 125 | + | ||
| 126 | + | ||
| 127 | + | ||
| 128 | + | (B)The location of project and individual housing units. | |
| 129 | + | ||
| 130 | + | ||
| 131 | + | ||
| 132 | + | (C)The size of each housing unit. | |
| 133 | + | ||
| 134 | + | ||
| 135 | + | ||
| 136 | + | (D)The number of families that will be eligible to purchase homes when the project is completed. | |
| 137 | + | ||
| 138 | + | ||
| 139 | + | ||
| 140 | + | (E)The purchase price of each housing unit. | |
| 141 | + | ||
| 142 | + | ||
| 143 | + | ||
| 144 | + | (F)The cost of building or rehabilitating each housing unit. | |
| 145 | + | ||
| 146 | + | ||
| 147 | + | ||
| 148 | + | (G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant. | |
| 149 | + | ||
| 150 | + | ||
| 151 | + | ||
| 152 | + | (H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board. | |
| 153 | + | ||
| 154 | + | ||
| 155 | + | ||
| 156 | + | (2)Establish criteria, consistent with the requirements of this section, for allocating credits. | |
| 157 | + | ||
| 158 | + | ||
| 159 | + | ||
| 160 | + | (3)Determine and designate applicants who meet the requirements of this section. | |
| 161 | + | ||
| 162 | + | ||
| 163 | + | ||
| 164 | + | (4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted. | |
| 165 | + | ||
| 166 | + | ||
| 167 | + | ||
| 168 | + | (5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis. | |
| 169 | + | ||
| 170 | + | ||
| 171 | + | ||
| 172 | + | (6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. | |
| 173 | + | ||
| 174 | + | ||
| 175 | + | ||
| 176 | + | (d) | |
| 177 | + | ||
| 178 | + | ||
| 179 | + | ||
| 69 | 180 | (c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23680 is five million dollars ($5,000,000), plus both of the following amounts: | |
| 70 | 181 | ||
| 71 | 182 | (1) The unallocated credit amount, if any, for the preceding fiscal year. | |
| 72 | 183 | ||
| 73 | - | (2) The amount of previously reserved credits not claimed. | |
| 184 | + | (2) The amount of previously allocated reserved credits not claimed. | |
| 185 | + | ||
| 186 | + | (e) | |
| 187 | + | ||
| 188 | + | ||
| 74 | 189 | ||
| 75 | 190 | (d) In the case where the credit allowed under this section exceeds the net tax, the excess credit may be carried over to reduce the net tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted. | |
| 191 | + | ||
| 192 | + | (f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision. | |
| 193 | + | ||
| 194 | + | ||
| 195 | + | ||
| 196 | + | (2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit. | |
| 197 | + | ||
| 198 | + | ||
| 199 | + | ||
| 200 | + | (3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party. | |
| 201 | + | ||
| 202 | + | ||
| 203 | + | ||
| 204 | + | (4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. | |
| 205 | + | ||
| 206 | + | ||
| 207 | + | ||
| 208 | + | (g) | |
| 209 | + | ||
| 210 | + | ||
| 76 | 211 | ||
| 77 | 212 | (e) For purposes of this section: | |
| 78 | 213 | ||
| 79 | 214 | (1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. | |
| 80 | 215 | ||
| 81 | - | (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5. | |
| 216 | + | (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5. | |
| 82 | 217 | ||
| 83 | 218 | (3) Qualified project means a project that satisfies all of the following: | |
| 84 | 219 | ||
| 85 | 220 | (A) Has a specific site in this state with a parcel identifier or address. | |
| 86 | 221 | ||
| 87 | 222 | (B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following: | |
| 88 | 223 | ||
| 89 | 224 | (i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code. | |
| 90 | 225 | ||
| 91 | 226 | (ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale. | |
| 92 | 227 | ||
| 93 | 228 | (iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose. | |
| 94 | 229 | ||
| 95 | 230 | (iv) The contract is recorded and provided to the assessor. | |
| 96 | 231 | ||
| 97 | 232 | (C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code. | |
| 98 | 233 | ||
| 99 | - | (f) This credit shall be in lieu of any other credit or deduction that the taxpayer may otherwise claim pursuant to this part with respect to the amount contributed by the taxpayer to a qualified developer for the qualified project. | |
| 100 | - | ||
| 101 | - | (f) | |
| 234 | + | (h) | |
| 102 | 235 | ||
| 103 | 236 | ||
| 104 | 237 | ||
| 105 | - | ( | |
| 238 | + | (f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 106 | 239 | ||
| 107 | - | ( | |
| 240 | + | (i) | |
| 108 | 241 | ||
| 109 | 242 | ||
| 110 | 243 | ||
| 111 | - | ( | |
| 244 | + | (g) Section 41 does not apply to the credit allowed by this section. | |
| 112 | 245 | ||
| 113 | - | SEC. 2. Section 23680 is added to the Revenue and Taxation Code, to read:23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, | |
| 246 | + | SEC. 2. Section 23680 is added to the Revenue and Taxation Code, to read:23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.80 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the tax, the excess credit may be carried over to reduce the tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. (g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.(2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) The credit may be assigned among members of the same combined report as provided by Section 23663.(i)(g) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(j)(h) Section 41 does not apply to the credit allowed by this section. | |
| 114 | 247 | ||
| 115 | 248 | SEC. 2. Section 23680 is added to the Revenue and Taxation Code, to read: | |
| 116 | 249 | ||
| 117 | 250 | ### SEC. 2. | |
| 118 | 251 | ||
| 119 | - | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, | |
| 252 | + | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.80 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the tax, the excess credit may be carried over to reduce the tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. (g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.(2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) The credit may be assigned among members of the same combined report as provided by Section 23663.(i)(g) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(j)(h) Section 41 does not apply to the credit allowed by this section. | |
| 120 | 253 | ||
| 121 | - | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, | |
| 254 | + | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.80 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the tax, the excess credit may be carried over to reduce the tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. (g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.(2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) The credit may be assigned among members of the same combined report as provided by Section 23663.(i)(g) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(j)(h) Section 41 does not apply to the credit allowed by this section. | |
| 122 | 255 | ||
| 123 | - | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, | |
| 256 | + | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project.(b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request.(2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project.(3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project.(4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year.(b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee:(1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity if applicable.(2)The state of incorporation or organization, if applicable.(3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number.(4)Contact information for the applicant, including all of the following:(A)Address.(B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person.(C)Phone number or numbers.(D)Email address.(5)Details about the project(6)The amount of credit requested.(7)The proposed taxable years for which the applicant is requesting the credit.(c)The California Tax Credit Allocation Committee shall do all of the following:(1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information:(A)The scope of project.(B)The location of project and individual housing units.(C)The size of each housing unit.(D)The number of families that will be eligible to purchase homes when the project is completed.(E)The purchase price of each housing unit.(F)The cost of building or rehabilitating each housing unit.(G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant.(H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board.(2)Establish criteria, consistent with the requirements of this section, for allocating credits.(3)Determine and designate applicants who meet the requirements of this section.(4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted.(5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis.(6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. (d)(c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.80 is five million dollars ($5,000,000), plus both of the following amounts:(1) The unallocated credit amount, if any, for the preceding fiscal year.(2) The amount of previously allocated reserved credits not claimed.(e)(d) In the case where the credit allowed under this section exceeds the tax, the excess credit may be carried over to reduce the tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted.(f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision.(2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit.(3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party.(4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. (g)(e) For purposes of this section:(1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.(2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5.(3) Qualified project means a project that satisfies all of the following:(A) Has a specific site in this state with a parcel identifier or address.(B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following:(i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code.(ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale.(iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.(iv) The contract is recorded and provided to the assessor.(C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.(h)(f) The credit may be assigned among members of the same combined report as provided by Section 23663.(i)(g) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.(j)(h) Section 41 does not apply to the credit allowed by this section. | |
| 124 | 257 | ||
| 125 | 258 | ||
| 126 | 259 | ||
| 127 | - | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, to | |
| 260 | + | 23680. (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the tax, as defined in Section 23036, in an amount determined by the California Tax Credit Allocation Committee in its credit certificate issued pursuant to this section, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project. project, but that does not exceed two hundred fifty thousand dollars ($250,000) per taxpayer per qualified project. | |
| 128 | 261 | ||
| 129 | 262 | (b) (1) To be eligible for the credit allowed by this section, a qualified taxpayer shall, prior to paying any funds to a qualified developer for a qualified project, request a tentative credit reservation from the Franchise Tax Board in the form and manner prescribed by the Franchise Tax Board. The taxpayer shall identify the qualified developer and qualified project in the request. | |
| 130 | 263 | ||
| 131 | 264 | (2) The amount of the tentative credit reservation for a taxable year shall be equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year for the development of a qualified project, but shall not exceed two hundred fifty thousand dollars ($250,000) for any qualified project. | |
| 132 | 265 | ||
| 133 | 266 | (3) The Franchise Tax Board shall approve a request for a tentative credit reservation. In approving the request for a tentative credit reservation, the Franchise Tax Board may verify that the developer is a qualified developer and that the project is a qualified project. | |
| 134 | 267 | ||
| 135 | 268 | (4) The Franchise Tax Board shall determine the aggregate amount of all tentative credit reservations, and shall only approve a request for a tentative credit reservation in an amount that complies with subdivision (a) and does not exceed the aggregate amount specified in subdivision (c) for that taxable year. | |
| 136 | 269 | ||
| 270 | + | (b)No credit shall be allowed pursuant to this section unless the qualified developer provides the following to the California Tax Credit Allocation Committee: | |
| 271 | + | ||
| 272 | + | ||
| 273 | + | ||
| 274 | + | (1)The name of the applicant, including the legal name and any other doing business as names, and the type of legal entity if applicable. | |
| 275 | + | ||
| 276 | + | ||
| 277 | + | ||
| 278 | + | (2)The state of incorporation or organization, if applicable. | |
| 279 | + | ||
| 280 | + | ||
| 281 | + | ||
| 282 | + | (3)The California corporation number, the California Secretary of State entity identification number, the federal employer identification number, or the social security number. | |
| 283 | + | ||
| 284 | + | ||
| 285 | + | ||
| 286 | + | (4)Contact information for the applicant, including all of the following: | |
| 287 | + | ||
| 288 | + | ||
| 289 | + | ||
| 290 | + | (A)Address. | |
| 291 | + | ||
| 292 | + | ||
| 293 | + | ||
| 294 | + | (B)Contact person or persons, one of which must be the applicant or an employee of the applicant and one of which must be designated as the primary contact person. | |
| 295 | + | ||
| 296 | + | ||
| 297 | + | ||
| 298 | + | (C)Phone number or numbers. | |
| 299 | + | ||
| 300 | + | ||
| 301 | + | ||
| 302 | + | (D)Email address. | |
| 303 | + | ||
| 304 | + | ||
| 305 | + | ||
| 306 | + | (5)Details about the project | |
| 307 | + | ||
| 308 | + | ||
| 309 | + | ||
| 310 | + | (6)The amount of credit requested. | |
| 311 | + | ||
| 312 | + | ||
| 313 | + | ||
| 314 | + | (7)The proposed taxable years for which the applicant is requesting the credit. | |
| 315 | + | ||
| 316 | + | ||
| 317 | + | ||
| 318 | + | (c)The California Tax Credit Allocation Committee shall do all of the following: | |
| 319 | + | ||
| 320 | + | ||
| 321 | + | ||
| 322 | + | (1)Establish a procedure for taxpayers to file with the California Tax Credit Allocation Committee, or any successor thereof, a written application, on a form jointly prescribed by the California Tax Credit Allocation Committee, or any successor thereof, and the Franchise Tax Board for the allocation of the credit. The application shall include, but not be limited to, all of the following information: | |
| 323 | + | ||
| 324 | + | ||
| 325 | + | ||
| 326 | + | (A)The scope of project. | |
| 327 | + | ||
| 328 | + | ||
| 329 | + | ||
| 330 | + | (B)The location of project and individual housing units. | |
| 331 | + | ||
| 332 | + | ||
| 333 | + | ||
| 334 | + | (C)The size of each housing unit. | |
| 335 | + | ||
| 336 | + | ||
| 337 | + | ||
| 338 | + | (D)The number of families that will be eligible to purchase homes when the project is completed. | |
| 339 | + | ||
| 340 | + | ||
| 341 | + | ||
| 342 | + | (E)The purchase price of each housing unit. | |
| 343 | + | ||
| 344 | + | ||
| 345 | + | ||
| 346 | + | (F)The cost of building or rehabilitating each housing unit. | |
| 347 | + | ||
| 348 | + | ||
| 349 | + | ||
| 350 | + | (G)A statement establishing that the credit described in this section is a significant factor in the applicants ability to perform the project. The statement shall include information about whether the qualified project is at risk of abandonment in the absence of the credit. The statement shall be signed by an officer or executive of the applicant. | |
| 351 | + | ||
| 352 | + | ||
| 353 | + | ||
| 354 | + | (H)Any other information deemed relevant by the California Tax Credit Allocation Committee or the Franchise Tax Board. | |
| 355 | + | ||
| 356 | + | ||
| 357 | + | ||
| 358 | + | (2)Establish criteria, consistent with the requirements of this section, for allocating credits. | |
| 359 | + | ||
| 360 | + | ||
| 361 | + | ||
| 362 | + | (3)Determine and designate applicants who meet the requirements of this section. | |
| 363 | + | ||
| 364 | + | ||
| 365 | + | ||
| 366 | + | (4)For each fiscal year, allocate the credit to each designated applicant according to the lowest average credit need, until the credit amount is exhausted. | |
| 367 | + | ||
| 368 | + | ||
| 369 | + | ||
| 370 | + | (5)If applications for the year do not exceed available credits, the California Tax Credit Allocation Committee shall make credits available on a first-come-first-served basis. | |
| 371 | + | ||
| 372 | + | ||
| 373 | + | ||
| 374 | + | (6)Certify credits allocated pursuant to this section and issue credit certificates to developers of designated applicants. | |
| 375 | + | ||
| 376 | + | ||
| 377 | + | ||
| 378 | + | (d) | |
| 379 | + | ||
| 380 | + | ||
| 381 | + | ||
| 137 | 382 | (c) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.80 is five million dollars ($5,000,000), plus both of the following amounts: | |
| 138 | 383 | ||
| 139 | 384 | (1) The unallocated credit amount, if any, for the preceding fiscal year. | |
| 140 | 385 | ||
| 141 | - | (2) The amount of previously reserved credits not claimed. | |
| 386 | + | (2) The amount of previously allocated reserved credits not claimed. | |
| 387 | + | ||
| 388 | + | (e) | |
| 389 | + | ||
| 390 | + | ||
| 142 | 391 | ||
| 143 | 392 | (d) In the case where the credit allowed under this section exceeds the tax, the excess credit may be carried over to reduce the tax in the following taxable year and succeeding five taxable years, if necessary, until the credit has been exhausted. | |
| 393 | + | ||
| 394 | + | (f)(1)Notwithstanding any other law, a taxpayer may sell the credit attributable to this section to an unrelated party pursuant to this subdivision. | |
| 395 | + | ||
| 396 | + | ||
| 397 | + | ||
| 398 | + | (2)The taxpayer shall report to the Franchise Tax Board prior to the sale of the credit, in a form and manner specified by the Franchise Tax Board, all required information regarding the purchase and sale of the credit. | |
| 399 | + | ||
| 400 | + | ||
| 401 | + | ||
| 402 | + | (3)A credit shall not be sold pursuant to this subdivision to more than one taxpayer, nor may the credit be resold by the unrelated party to another taxpayer or other party. | |
| 403 | + | ||
| 404 | + | ||
| 405 | + | ||
| 406 | + | (4)The taxpayer may not sell the credit for less than 90 percent of the face value of the credit to an unrelated taxpayer. | |
| 407 | + | ||
| 408 | + | ||
| 409 | + | ||
| 410 | + | (g) | |
| 411 | + | ||
| 412 | + | ||
| 144 | 413 | ||
| 145 | 414 | (e) For purposes of this section: | |
| 146 | 415 | ||
| 147 | 416 | (1) Area median income shall mean area median income as published by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. | |
| 148 | 417 | ||
| 149 | - | (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5. | |
| 418 | + | (2) Qualified developer means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption pursuant to Section 214.5 and has been issued a credit certificate by the California Tax Credit Allocation Committee pursuant to this section. 214.5. | |
| 150 | 419 | ||
| 151 | 420 | (3) Qualified project means a project that satisfies all of the following: | |
| 152 | 421 | ||
| 153 | 422 | (A) Has a specific site in this state with a parcel identifier or address. | |
| 154 | 423 | ||
| 155 | 424 | (B) Units will be sold to persons and families with income at 30 percent to 80 percent of the area median income and subject to a contract that meets all of the following: | |
| 156 | 425 | ||
| 157 | 426 | (i) The contract restricts the use of the land for at least 30 years to owner-occupied housing available at affordable housing cost in accordance with Section 50052.5 of the Health and Safety Code. | |
| 158 | 427 | ||
| 159 | 428 | (ii) The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale. | |
| 160 | 429 | ||
| 161 | 430 | (iii) The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose. | |
| 162 | 431 | ||
| 163 | 432 | (iv) The contract is recorded and provided to the assessor. | |
| 164 | 433 | ||
| 165 | 434 | (C) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code. | |
| 166 | 435 | ||
| 167 | - | (f) The credit may be assigned among members of the same combined report as provided by Section 23663. | |
| 168 | - | ||
| 169 | - | (g) This credit shall be in lieu of any other credit or deduction that the taxpayer may otherwise claim pursuant to this part with respect to the amount contributed by the taxpayer to a qualified developer for the qualified project. | |
| 170 | - | ||
| 171 | - | (g) | |
| 172 | - | ||
| 173 | - | ||
| 174 | - | ||
| 175 | - | (h) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 176 | - | ||
| 177 | 436 | (h) | |
| 178 | 437 | ||
| 179 | 438 | ||
| 180 | 439 | ||
| 181 | - | (i) Section 41 does not apply to the credit allowed by this section. | |
| 440 | + | (f) The credit may be assigned among members of the same combined report as provided by Section 23663. | |
| 441 | + | ||
| 442 | + | (i) | |
| 443 | + | ||
| 444 | + | ||
| 445 | + | ||
| 446 | + | (g) This section shall remain in effect only until December 1, 2024, and as of that date is repealed. | |
| 447 | + | ||
| 448 | + | (j) | |
| 449 | + | ||
| 450 | + | ||
| 451 | + | ||
| 452 | + | (h) Section 41 does not apply to the credit allowed by this section. | |
| 182 | 453 | ||
| 183 | 454 | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 184 | 455 | ||
| 185 | 456 | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 186 | 457 | ||
| 187 | 458 | SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 188 | 459 | ||
| 189 | 460 | ### SEC. 3. |