Plain English Breakdown
The official summary contains a typographical error listing both '2031,' and '2032', making it unclear which year is intended as the final expiration date.
Extending Tax Credits for Fixing Historic Buildings
AB-1265 extends the income tax credit program for rehabilitating certified historic structures through January 1, 2032, while removing special bonuses and changing how annual funding limits are set.
What This Bill Does
- Extends the current tax credit program from ending in 2027 to a new period beginning on or after January 1, 2027, and before January 1, 2032.
- Removes the extra 25% bonus credit for projects that include affordable housing starting with taxable years beginning on or after January 1, 2027.
- Eliminates the separate tax credit available specifically for qualified residences for taxable years beginning on or after January 1, 2027.
- Removes the fixed dollar limit on total credits per year and instead requires the Legislature to set limits annually through budget acts.
- Requires the Legislative Analyst to submit a report reviewing how well these tax credits worked between January 1, 2025, and before January 1, 2027.
Who It Names or Affects
- Taxpayers who pay Personal Income Tax or Corporation Tax in California.
- Owners of certified historic structures seeking funds for rehabilitation.
- The Legislative Analyst, the California Tax Credit Allocation Committee (CTCAC), and the State Office of Historic Preservation.
Terms To Know
- Certified historic structure
- A building officially recognized as having historical value that qualifies for special tax rules under existing law.
- Tax credit allocation
- The specific amount of money a taxpayer is allowed to use against their taxes, which must be approved by the CTCAC.
Limits and Unknowns
- The bill does not state what the new annual dollar limits will be because those numbers are set later in budget acts.
- The official text lists both '2031' and '2032', indicating uncertainty about which year is the final end date.