17158.
(a) For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income shall not include any amount received by a taxpayer in exchange for a tax loss transferred pursuant to Section 17039.3 if the following conditions are met:(1) Within 180 days of receipt, the taxpayer invests that amount in an affordable housing project or a corporation, partnership, or limited liability company that is engaged in providing affordable housing.
(2) The taxpayer provides documentation to the Franchise Tax Board verifying compliance with paragraph (1), in the form and manner prescribed by the Franchise Tax Board.
(b) For purposes of this section:
(1) “Affordable housing” means housing with an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to households whose gross income does not exceed 120 percent of the area median income.
(2) “Affordable housing project” means any project, whether by an individual, corporation, partnership, or limited liability company, to design, build, convert, or develop residential housing units for rent or sale as affordable housing.
(c) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to carry out the purposes of this section and Section 17039.3.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section or Section 17039.3.