Plain English Breakdown
The official source does not specify an effective date, only the chaptering date (October 10, 2025).
Change How Tax Credits for Low-Income Housing Are Sold
This law changes how taxpayers choose to sell their low-income housing tax credits by letting the California Tax Credit Allocation Committee set the rules.
What This Bill Does
- Changes when a taxpayer can say they want to sell their state tax credit for low-income housing from an application form to methods chosen by the committee.
Who It Names or Affects
- Taxpayers who receive state tax credits for qualified low-income housing projects or farmworker housing.
- The California Tax Credit Allocation Committee, which now sets the method for selling credits.
Terms To Know
- Low-Income Housing Tax Credit
- A reduction in state insurance, personal income, or corporation taxes given to qualified low-income housing projects and farmworker housing that also have federal tax credits.
- California Tax Credit Allocation Committee (CTCAC)
- The state group that provides procedures for sharing tax credits and now sets the rules for selling them.
Limits and Unknowns
- The text does not say exactly what new methods the committee will create.
- The source material does not list a specific effective date, only that it was enacted in October 2025.