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AB-1206 Income tax credits: leased or rented property: persons receiving housing services or assistance.(2019-2020)

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Date Published: 04/10/2019 09:00 PM
AB1206:v98#DOCUMENT

Amended  IN  Assembly  April 10, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1206


Introduced by Assembly Member Choi

February 21, 2019


An act to add and repeal Sections 17053.81 and 23681 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1206, as amended, Choi. Income tax credits: leased or rented property: persons receiving housing services or assistance.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, under both laws, for taxable years beginning on or after January 1, 2019, and before January 1, 2030, 2024, would allow a credit against those taxes to a taxpayer that owns qualified property, as defined, in an amount equal to $500 for each qualified property owned by the taxpayer, not to exceed $5,000 per taxable year.
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 17053.81 is added to the Revenue and Taxation Code, to read:

17053.81.
 (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2030, 2024, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a taxpayer that owns qualified property, in an amount equal to five hundred dollars ($500) for each qualified property owned by the taxpayer, not to exceed five thousand dollars ($5,000) per taxable year.
(b) For purposes of this section, both of the following shall apply:
(1) “Qualified property” means a unit rented to, or leased by, qualified persons at below market rates.
(2) “Qualified persons” means persons receiving housing services or assistance from a nonprofit organization.
(c) A taxpayer that owns a proportional share of the qualified property may claim the credit allowed by this section based upon the taxpayer’s ownership share of the property.
(d) 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 years if necessary, until the credit is exhausted.
(e) Section 41 does not apply to the credit allowed by this section.
(f) This section shall remain in effect only until December 1, 2030, 2024 and as of that date is repealed.

SEC. 2.

 Section 23681 is added to the Revenue and Taxation Code, to read:

23681.
 (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2030, 2024, there shall be allowed a credit against the “tax,” as defined in Section 23036, to a taxpayer that owns qualified property, in an amount equal to five hundred dollars ($500) for each qualified property owned by the taxpayer, not to exceed five thousand dollars ($5,000) per taxable year.
(b) For purposes of this section, both of the following shall apply:

“Qualified

(1) “Qualified property” means a unit rented to, or leased by, qualified persons at below market rates.
(2) “Qualified persons” means persons receiving housing services or assistance from a nonprofit organization.
(c) A taxpayer that owns a proportional share of the qualified property may claim the credit allowed by this section based upon the taxpayer’s ownership share of the property.
(d) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
(e) Section 41 does not apply to the credit allowed by this section.
(f) This section shall remain in effect only until December 1, 2030, 2024, and as of that date is repealed.

SEC. 3.

 For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.81 and 23681 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 at below market rates to persons receiving housing services or assistance from a nonprofit organization.
(b) The effectiveness of the credits shall be measured by the number of taxpayers claiming the credit.

SEC. 3.SEC. 4.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.