17052.9.
(a) For each taxable year beginning on or after January 1, 2024, and before January 1, 2029, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to 50 percent of qualified expenses incurred by the qualified taxpayer during the taxable year. (b) For purposes of this section:
(1) (A) “Qualified expenses” means the rate of each unit in qualified lodging provided free of charge to displaced persons during a state of emergency declared by the Governor or President, times the number of nights displaced persons occupied the unit, not to exceed two thousand dollars ($2,000) per unit and not to exceed ten thousand dollars ($10,000) total per state of emergency declaration.
(B) “Qualified expenses” does not include meals or other amenities provided by the qualified taxpayer to displaced persons.
(2) (A) “Qualified lodging” means a hotel, motel, inn, bed and breakfast, or other similar transient lodging, that satisfies both of the following:
(i) Is located in a county for which a state of emergency has been declared by the Governor or President.
(ii) Has 50 or fewer units.
(B) “Qualified lodging” does not include property, lodging, emergency shelters, or other businesses owned or operated by a public agency.
(C) “Qualified lodging” does not include property, lodging, emergency shelters, or other businesses that are funded by the Project Roomkey and Rehousing Program, the HomeKey grant program, Federal Emergency Management Agency housing vouchers or temporary rental assistance, or other similar federal, state, or local public programs.
(3) “Qualified taxpayer” means a taxpayer operating qualified lodging in the state.
(4) “Rate” means the rate of the unit that would have been charged to other persons at the time the unit in the qualified lodging was provided free of charge to the displaced person.
(5) “Unit” means each rentable or bookable space within qualified lodging.
(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed under this section.
(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 seven years, if necessary, until the credit is exhausted.
(e) (1) The Franchise Tax Board may adopt regulations necessary or appropriate to carry out the purposes of this section.
(2) A qualified taxpayer claiming the credit under this section shall provide to the Franchise Tax Board, upon request, statements from all displaced persons who occupied a unit in the qualified lodging free of charge (A) that the displaced person occupied a unit in the qualified lodging free of charge and (B) noting the number of nights the displaced person occupied the unit.
(3) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board for the purpose of administering this section.
(f) For purposes of complying with Section 41, the Legislature finds and declares the following:
(1) The specific goal, purpose, and objective that the credit will achieve is to increase access to shelter for displaced persons during declared emergencies, including for natural disasters.
(2) Detailed performance indicators for the Legislature to use in determining whether the credit meets that goal, purpose, and objective are as follows:
(A) The cumulative number of displaced persons given shelter during a declaration of emergency.
(B) The number of qualified taxpayers that are allowed a credit under this section.
(3) The Franchise Tax Board, on or before January 1, 2028, shall review the effectiveness of the credit and post the review on their internet website. The review shall include, but not be limited to, an analysis of the demand for the credit and the economic impact of the credit.
(g) This section shall remain in effect only until December 1, 2029, and as of that date is repealed.