Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-1670 Income taxes: credits: qualified developer: affordable housing.(2017-2018)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 04/18/2017 09:00 PM
AB1670:v97#DOCUMENT

Amended  IN  Assembly  April 18, 2017
Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1670


Introduced by Assembly Member Gomez

February 17, 2017


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 DIGEST


AB 1670, as amended, Gomez. 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, 2017, and before January 1, 2022, in an amount equal to 50% of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year by a taxpayer for the development of a qualified project, as defined, not to exceed $250,000.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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, 2017, and before January 1, 2022, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year by a taxpayer for the development of a qualified project, not to exceed two hundred fifty thousand dollars ($250,000).
(b) A qualified developer shall do both of the following:
(1) Apply to the Department of Housing and Community Development, in the form and manner prescribed by the department, for approval of a qualified project.
(2) Provide documentation to the taxpayer, upon request, that the project has been approved as a qualified project.
(c) The Department of Housing and Community Development shall do both of the following:
(1) Determine whether a project is a qualified project. If a project is a qualified project, the department shall approve the project.
(2) Provide documentation to the qualified developer, upon request, that the project has been approved as a qualified project.
(d) For purposes of this section:
(1) “Affordable housing cost” has the same meaning as that term is described in Section 50052.5 of the Health and Safety Code.

(1)

(2) “Persons and families of low income” has the same meaning as that term is defined in Section 50093 of the Health and Safety Code.

(2)

(3) “Qualified developer” means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that develops properties intended to be sold to persons and families of low income.

(3)

(4) “Qualified project” means a project that satisfies all of the following:
(A) Has a specific site with a parcel identifier or address.
(B) Is under the management of a qualified developer. “Under the management of a qualified developer” includes, but is not limited to, providing project management and development, providing downpayment and closing cost assistance, providing housing counseling and marketing fees, and removing liens in order to provide home ownership opportunities for persons and families of low income. means that the qualified developer is providing project management and development.
(C) Complies with all applicable local land use and zoning ordinances.
(D) Will be sold to persons and families of low income at an affordable housing cost.
(E) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.
(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 two years if necessary, until the credit is exhausted.
(f) This section shall remain in effect only until December 1, 2022, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (e), until the credit is exhausted.
(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, 2017, and before January 1, 2022, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 50 percent of the amount paid or incurred by a taxpayer to a qualified developer during the taxable year by a taxpayer for the development of a qualified project, not to exceed two hundred fifty thousand dollars ($250,000).
(b) A qualified developer shall do both of the following:
(1) Apply to the Department of Housing and Community Development, in the form and manner prescribed by the department, for approval of a qualified project.
(2) Provide documentation to the taxpayer, upon request, that the project has been approved as a qualified project.
(c) The Department of Housing and Community Development shall do both of the following:
(1) Determine whether a project is a qualified project. If a project is a qualified project, the department shall approve the project.
(2) Provide documentation to the qualified developer, upon request, that the project has been approved as a qualified project.
(d) For purposes of this section:
(1) “Affordable housing cost” has the same meaning as that term is described in Section 50052.5 of the Health and Safety Code.

(1)

(2) “Persons and families of low income” has the same meaning as that term is defined in Section 50093 of the Health and Safety Code.

(2)

(3) “Qualified developer” means a nonprofit organization organized pursuant to Section 501(c)(3) of the Internal Revenue Code that develops properties intended to be sold to persons and families of low income.

(3)

(4) “Qualified project” means a project that satisfies all of the following:
(A) Has a specific site with a parcel identifier or address.
(B) Is under the management of a qualified developer. “Under the management of a qualified developer” includes, but is not limited to, providing project management and development, providing downpayment and closing cost assistance, providing housing counseling and marketing fees, and removing liens in order to provide home ownership opportunities for persons and families of low income. means that the qualified developer is providing project management and development.
(C) Complies with all applicable local land use and zoning ordinances.
(D) Will be sold to persons and families of low income at an affordable housing cost.
(E) Is subject to equity sharing provisions as described in paragraph (2) of subdivision (c) of Section 65915 of the Government Code.
(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 two years if necessary, until the credit is exhausted.
(f) This section shall remain in effect only until December 1, 2022, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (e), until the credit is exhausted.
(g) 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.