17053.60.
(a) For each taxable year beginning on or after January 1, 2021, and before January 1, 2033, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, to a taxpayer that sells a qualified vacant site in an amount equal to the following:(1) Fifty percent of the tax attributable to a capital gain from the sale of a qualified vacant site in the taxable year that it is sold.
(2) Fifty percent of the tax attributable to a capital gain from the sale of a qualified vacant site in the taxable year that the construction process begins to build housing or a mixed-use development on the qualified vacant site if construction begins no later than five years
from the sale of the qualified vacant site.
(b) (1) For purposes of this section, “qualified vacant site” means an undeveloped site or a site with a building that has been abandoned for three or more years, that is surrounded by development on two or more sides, and that has any of the following densities approved for development:
(A) For a city located in a nonmetropolitan county or for a nonmetropolitan county that has a micropolitan area within it, sites that are approved for the development of at least 15 units per acre.
(B) For an unincorporated area in a nonmetropolitan county that does not meet the requirements of subparagraph (A), sites that are approved for the development of at least 10 units per acre.
(C) For a suburban
jurisdiction, sites that are approved for the development of at least 20 units per acre.
(D) For a city located within a metropolitan county, or for a metropolitan county, sites that are approved for the development of at least 30 units per acre.
(2) For purposes of paragraph (1), a metropolitan county, a micropolitan county, a nonmetropolitan county, and a suburban county shall be determined in accordance with Section 65583.2 of the Government Code.
(c) If more than one taxpayer owns the qualified vacant site, the credit shall be allocated among the taxpayers based on percentage of ownership.
(d) A county assessor, upon request of the taxpayer or the Franchise Tax Board, shall provide a report relating to the use of the qualified vacant site.
(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 seven years if necessary, until the credit is exhausted.
(f) The Franchise Tax Board may issue any regulations necessary or appropriate to implement the purposes of this section.
(g) This section shall remain in effect only until December 1, 2033, and as of that date is repealed.