Today's Law As Amended

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SB-521 Income and corporation taxes: credits: leased or rented property: persons receiving Section 8 assistance.(2019-2020)



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, 2020, and before January 1, 2025, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to 3 percent of the qualified amount per qualified property.
(b) For purposes of this section:
(1) “Local housing authority” means a housing authority created pursuant to Chapter 1 (commencing with Section 34200) of Part 2 of Division 24 of the Health and Safety Code.
(2) “Qualified amount” means the total amount of rent or lease payments in the form of federal housing assistance vouchers issued under Section 1437f of Title 42 of the United States Code, not including project-based vouchers as provided by Section 1437f(o)(13) of Title 42 of the United States Code, received by the qualified taxpayer during the taxable year in which the credit is claimed.
(3) “Qualified property” means a dwelling or unit that is rented or leased to persons receiving assistance under Section 8 of the United State Housing Act of 1937 (42 U.S.C. Sec. 1437f).
(4) “Qualified taxpayer” means a taxpayer that satisfies both of the following:
(A) Owns qualified property.
(B) Enters into a new contract or contracts to rent or lease qualified property on or after January 1, 2020.
(c) To be eligible for the credit the qualified taxpayer shall obtain verification from the appropriate local housing authority that the property for which a credit is claimed satisfies the definition of qualified property. The qualified taxpayer shall provide a copy of the verification to the Franchise Tax Board.
(d) A qualified taxpayer shall not receive a credit for more than five qualified properties per taxable year.
(e)  In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding eight years if necessary, until the credit is exhausted.
(f) (1) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.
(2) Unless otherwise specified in any bill providing for appropriations related to the Budget Act, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, the amount of credit allowed pursuant to this section shall be zero dollars ($0).

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, 2020, and before January 1, 2025, there shall be allowed to a qualified taxpayer a credit against the “tax,” as defined in Section 23036, in an amount equal to 3 percent of the qualified amount per qualified property.
(b) For purposes of this section:
(1) “Local housing authority” means a housing authority created pursuant to Chapter 1 (commencing with Section 34200) of Part 2 of Division 24 of the Health and Safety Code.
(2) “Qualified amount” means the total amount of rent or lease payments in the form of federal housing assistance vouchers issued under Section 1437f of Title 42 of the United States Code, not including project-based vouchers as provided by Section 1437f(o)(13) of Title 42 of the United States Code, received by the qualified taxpayer during the taxable year in which the credit is claimed.
(3) “Qualified property” means a dwelling or unit that is rented or leased to persons receiving assistance under Section 8 of the United State Housing Act of 1937 (42 U.S.C. Sec. 1437f).
(4) “Qualified taxpayer” means a taxpayer that satisfies both of the following:
(A) Owns qualified property.
(B) Enters into a new contract or contracts to rent or lease qualified property on or after January 1, 2020.
(c) To be eligible for the credit the qualified taxpayer shall obtain verification from the appropriate local housing authority that the property for which a credit is claimed satisfies the definition of qualified property. The qualified taxpayer shall provide a copy of the verification to the Franchise Tax Board.
(d) A qualified taxpayer shall not receive a credit for more than five qualified properties per taxable year.
(e) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding eight years if necessary, until the credit is exhausted.
(f) (1) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.
(2) Unless otherwise specified in any bill providing for appropriations related to the Budget Act, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, the amount of credit allowed pursuant to this section shall be zero dollars ($0).
SEC. 3.
 For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.80 and 23680 of the Revenue and Taxation Code as added by this act, the Legislature finds and declares as follows:
(a) The goal of the credits is to reduce homelessness by providing a tax incentive to property owners that rent or lease property to persons receiving assistance under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f).
(b) The effectiveness of the credits shall be measured by the number of taxpayers claiming the credit.
SEC. 4.
 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 5.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.