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AB-2999 Income taxes: credits: affordable housing.(2017-2018)

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Date Published: 05/10/2018 09:00 PM
AB2999:v98#DOCUMENT

Amended  IN  Assembly  May 10, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2999


Introduced by Assembly Member Bonta

February 16, 2018


An act to add and repeal Sections 17057.7 and 23610.7 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2999, as amended, Bonta. Income taxes: credits: affordable housing: employer-assisted housing programs. 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 equal to 50% 25% of the amount of cash paid or incurred, or the equivalent value of qualified land or property donated, by an employer donated to a nonprofit organization by a taxpayer during the taxable year for the construction of affordable housing, as defined, for employees or the investment in an employer-assisted housing program, as defined. The bill would limit the aggregate amount of these credits to be allocated in any fiscal year to up to $10,000,000 and would require these credits to be allocated on a first-come-first-served basis.
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 17057.7 is added to the Revenue and Taxation Code, to read:

17057.7.
 (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, an amount equal to 50 25 percent of the amount of cash paid or incurred, or the equivalent value of qualified land or property donated, by an employer donated to a nonprofit organization by a taxpayer during the taxable year for the construction of affordable housing for employees or the investment in an employer-assisted housing program. housing.
(b) For purposes of this section:
(1) “Affordable housing” means housing developments in which some 25 percent or more of the dwelling units may be purchased or rented, with or without government assistance, on a basis that is affordable to persons or families of low or moderate income, as defined in Section 50093 of the Health and Safety Code. individuals and families of low income, and to which employees of the taxpayer who are individuals of low income have first priority to purchase or rent.

(2)“Employer-assisted housing program” includes monetary assistance for, or the subsidizing of, an employee’s rent or mortgage payments or employer-funded housing developments for employees.

(2) “Individuals and families of low income” or “individuals of low income” means individuals or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of housing financed pursuant to Division 31 (commencing with Section 50000) of the Health and Safety Code.
(3) “Nonprofit organization” means a nonprofit charitable organization exempt from federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code that constructs affordable housing.
(4) “Qualified land or property” means land or property that is deed restricted to ensure that the affordable housing units, if rented, shall be made available to individuals and families of low income for a period of 55 years or more.
(c) The aggregate amount of credits that may be allocated in any fiscal year pursuant to this section and Section 23610.7 shall be ten million dollars ($10,000,000) and these credits shall be allocated on a first-come-first-served basis.

(c)

(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.

(d)It is the intent of the Legislature to comply with Section 41.

(e) In compliance with Section 41, the ____ shall track the number of affordable housing units that are constructed by a nonprofit organization as a result of this credit.
(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.

SEC. 2.

 Section 23610.7 is added to the Revenue and Taxation Code, to read:

23610.7.
 (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, an amount equal to 50 25 percent of the amount of cash paid or incurred, or the equivalent value of qualified land or property donated, by an employer donated to a nonprofit organization by a taxpayer during the taxable year for the construction of affordable housing for employees or the investment in an employer-assisted housing program. housing.
(b) For purposes of this section:
(1) “Affordable housing” means housing developments in which some 25 percent or more of the dwelling units may be purchased or rented, with or without government assistance, on a basis that is affordable to persons or families of low or moderate income, as defined in Section 50093 of the Health and Safety Code. individuals and families of low income, and to which employees of the taxpayer who are individuals of low income have first priority to purchase or rent.

(2)“Employer-assisted housing program” includes monetary assistance for, or the subsidizing of, an employee’s rent or mortgage payments or employer-funded housing developments for employees.

(2) “Individuals and families of low income” or “individuals of low income” means individuals or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of housing financed pursuant to Division 31 (commencing with Section 50000) of the Health and Safety Code.
(3) “Nonprofit organization” means a nonprofit charitable organization exempt from federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code that constructs affordable housing.
(4) “Qualified land or property” means land or property that is deed restricted to ensure that the affordable housing units, if rented, shall be made available to individuals and families of low income for a period of 55 years or more.
(c) The aggregate amount of credits that may be allocated in any fiscal year pursuant to this section and Section 17057.7 shall be ten million dollars ($10,000,000) and these credits shall be allocated on a first-come-first-served basis.

(c)

(d) 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.

(d)It is the intent of the Legislature to comply with Section 41.

(e) In compliance with Section 41, the ____ shall track the number of affordable housing units that are constructed by a nonprofit organization as a result of this credit.
(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.

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.