Community development financial institutions: grant program: income taxation: credits.
Impact
SB 1230 establishes a Community Development Financial Institutions Grant Fund and outlines requirements for eligible recipients, such as offering matching funds on a dollar-for-dollar basis from private sources. The grant funds can be utilized for loans, grants, equity investments, or technical assistance within low-income communities. The bill also reinstates income tax credits for investments in CDFIs, previously available until 2017, to encourage tax-paying entities to invest in these institutions, further supporting community development initiatives in California.
Summary
Senate Bill No. 1230, introduced by Senators Umberg and Caballero, seeks to establish a Community Development Financial Institutions Grant Program in California. This program will be administered by the Governor's Office of Business and Economic Development (GO-Biz) and is aimed at providing grants to qualified community development financial institutions (CDFIs). The purpose is to enhance their ability to lend and invest in low-income communities, with funds allocated to specific activities designed to have a substantial benefit for lower-income households.
Contention
The proposal is designed to stimulate economic growth by leveraging federal programs and providing localized support, but reactions vary. Advocates argue that it addresses a crucial need for funding in underserved communities and supports sustainable economic development. Critics, however, may raise concerns about the potential long-term fiscal implications and the effectiveness of tax credits, citing prior issues with the implementation of similar measures and the need for strict oversight to ensure accountability in fund distribution.
Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.