How AB 2270 changes current law

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This bill amends 3 section(s) of the California codes: Section 12206 of the Revenue and Taxation Code; Section 17058 of the Revenue and Taxation Code; Section 23610.5 of the Revenue and Taxation Code.

• Section 12206 of the Revenue and Taxation Code

  50 located in DDAs or QCTs or receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g), even if the taxpayer receives federal credits pursuant to Section 42(d)(5)(B) of the Internal Revenue Code, relating to increase in credit for buildings in high-cost areas, the following: (A)For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are not federally subsidized for the taxable year, determined in accordance with the requirements of Section 42(b)(2) of the Internal Revenue Code, relating to temporary minimum credit rate for nonfederally subsidized new buildings, in lieu of the percentage prescribed in Section 42(b)(1)(A) of the Internal Revenue Code.(B)For the fourth year, the difference between 30 percent and the sum of the applicable percentages for the first three years. the following: (A)For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are federally subsidized for the taxable year.(B)For the fourth year, the difference between 13 percent and the sum of the applicable percentages for the first three years. National Act of 1990, federal → SEC. 2.5. Section 12206 of the Revenue and Taxation Code is amended to read: 25 designated under Section 42(d)(5)(B)(v) of the Internal Revenue Code or subparagraph (B) of paragraph (1) of subdivision (g), for each of the first three years, 9 percent of the qualified basis of the building, and for the fourth year, 3 percent of the qualified basis of the building. each of for each of the first three years, 4 percent of the qualified basis of the building, and for the fourth year, 1 percent of the qualified basis of the building. Act, United States California (V) The California Tax Credit Allocation Committee shall consider amending the regulations establishing a scoring system, as required by this clause, to establish a housing type for farmworker housing projects. For the purpose of assigning points based on the proximity of amenities to an eligible farmworker housing project, the committee shall consider using the same point allocations as provided for rural set-aside projects. (6) No amount shall be provided for projects to provide farmworker housing used to comply with the requirement under Section 1188(c)(4) of Title 8 of the United States Code to furnish housing to H-2A workers.

  amended

• Section 17058 of the Revenue and Taxation Code

  50 or more building located in DDAs or QCTs or receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g), even if the taxpayer receives federal credits pursuant to Section 42(d)(5)(B) of the Internal Revenue Code, relating to increase in credit for buildings in high-cost areas, the following: (A)For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are not federally subsidized for the taxable year, determined in accordance with the requirements of Section 42(b)(2) of the Internal Revenue Code, relating to temporary minimum credit rate for nonfederally subsidized new buildings, in lieu of the percentage prescribed in Section 42(b)(1)(A) of the Internal Revenue Code.(B)For the fourth year, the difference between 30 percent and the sum of the applicable percentages for the first three years. the following: (A)For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are federally subsidized for the taxable year.(B)For the fourth year, the difference between 13 percent and the sum of the applicable percentages for the first three years. through National Act of 1990, federal (D)Subparagraphs (B) and (C) shall not apply to projects receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g). → SEC. 3.5. Section 17058 of the Revenue and Taxation Code is amended to read: as applicable for federal income tax purposes for the taxable year, minimum buildings designated under Section 42(d)(5)(B)(v) of the Internal Revenue Code or subparagraph (B) of paragraph (1) of subdivision (g), for each of the first three years, 9 percent of the qualified basis of the building, and for the fourth year, 3 percent of the qualified basis of the building. each of for each of the first three years, 4 percent of the qualified basis of the building, and for the fourth year, 1 percent of the qualified basis of the building. to Act, United States California (V) The California Tax Credit Allocation Committee shall consider amending the regulations establishing a scoring system, as required by this clause, to establish a housing type for farmworker housing projects. For the purpose of assigning points based on the proximity of amenities to an eligible farmworker housing project, the committee shall consider using the same point allocations as provided for rural set-aside projects. (6) No amount shall be provided for projects to provide farmworker housing used to comply with the requirement under Section 1188(c)(4) of Title 8 of the United States Code to furnish housing to H-2A workers. (D) Subparagraphs (B) and (C) shall not apply to projects receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g).

  amended

• Section 23610.5 of the Revenue and Taxation Code

  50 or more building located in DDAs or QCTs or receiving an allocation pursuant to subparagraph (B) of paragraph (1) of subdivision (g), even if the taxpayer receives federal credits pursuant to Section 42(d)(5)(B) of the Internal Revenue Code, relating to increase in credit for buildings in high-cost areas, the following: (A)For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are not federally subsidized for the taxable year, determined in accordance with the requirements of Section 42(b)(2) of the Internal Revenue Code, relating to temporary minimum credit rate for nonfederally subsidized new buildings, in lieu of the percentage prescribed in Section 42(b)(1)(A) of the Internal Revenue Code.(B)For the fourth year, the difference between 30 percent and the sum of the applicable percentages for the first three years. the following: (A)For each of the first three years, the percentage prescribed by the Secretary of the Treasury for new buildings that are federally subsidized for the taxable year.(B)For the fourth year, the difference between 13 percent and the sum of the applicable percentages for the first three years. National Act of 1990, federal SEC. 5. → SEC. 4.5. Section 23610.5 of the Revenue and Taxation Code is amended to read: as applicable for federal income tax purposes for the taxable year, minimum buildings designated under Section 42(d)(5)(B)(v) of the Internal Revenue Code or subparagraph (B) of paragraph (1) of subdivision (g), for each of the first three years, 9 percent of the qualified basis of the building, and for the fourth year, 3 percent of the qualified basis of the building. each of for each of the first three years, 4 percent of the qualified basis of the building, and for the fourth year, 1 percent of the qualified basis of the building. Act, United States California (V) The California Tax Credit Allocation Committee shall consider amending the regulations establishing a scoring system, as required by this clause, to establish a housing type for farmworker housing projects. For the purpose of assigning points based on the proximity of amenities to an eligible farmworker housing project, the committee shall consider using the same point allocations as provided for rural set-aside projects. (6) No amount shall be provided for projects to provide farmworker housing used to comply with the requirement under Section 1188(c)(4) of Title 8 of the United States Code to furnish housing to H-2A workers. SEC. 5. (b) Section 3.5 of this bill incorporates amendments to Section 17058 of the Revenue and Taxation Code proposed by both this bill and SB 1072. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, but this bill becomes operative first, (2) each bill amends Section 17058 of the Revenue and Taxation Code, and (3) this bill is enacted after SB 1072, in which case Section 17058 of the Revenue and Taxation Code, as amended by Section 3 of this bill, shall remain operative only until the operative date of SB 1072, at which time Section 3.5 of this bill shall become operative. (c) Section 4.5 of this bill incorporates amendments to Section 23610.5 of the Revenue and Taxation Code proposed by both this bill and SB 1072. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, but this bill becomes operative first, (2) each bill amends Section 23610.5 of the Revenue and Taxation Code, and (3) this bill is enacted after SB 1072, in which case Section 23610.5 of the Revenue and Taxation Code, as amended by Section 4 of this bill, shall remain operative only until the operative date of SB 1072, at which time Section 4.5 of this bill shall become operative. SEC. 6.

  amended