Plain English Breakdown
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AB-2270: Low-Income Housing Tax Credit Rules for Farmworker Housing
This law requires the California Tax Credit Allocation Committee to consider scoring changes for farmworker housing and prohibits using state tax credits for H-2A worker housing starting in taxable years after January 1, 2027.
What This Bill Does
- Requires the California Tax Credit Allocation Committee (CTCAC) to consider creating a specific category in its scoring system for farmworker housing projects.
- Asks CTCAC to consider using point allocations similar to rural set-aside projects based on how close amenities are to eligible farmworker housing.
- Changes the definition of 'state funding' starting January 1, 2027, to include state low-income housing tax credits.
- Prohibits providing these tax credits for farmworker housing used to meet federal H-2A worker requirements.
Who It Names or Affects
- The California Tax Credit Allocation Committee (CTCAC)
- Employers who hire nonimmigrant agricultural workers known as H-2A workers
- Developers seeking state low-income housing tax credits for farmworker projects
Terms To Know
- Low-Income Housing Tax Credit
- State insurance, personal income, and corporation tax credit amounts allocated to qualified low-income housing projects.
- H-2A Workers
- Nonimmigrant agricultural workers authorized under federal law if their employer provides specified requirements including housing.
- CTCAC
- The California Tax Credit Allocation Committee, which sets procedures for allocating tax credits to qualified projects.
Limits and Unknowns
- The bill only requires CTCAC to consider changing scoring rules; it does not force them to make those changes.
- The ban on using tax credits for H-2A housing applies only to taxable years beginning on or after January 1, 2027.