California 2021-2022 Regular Session Status: In Committee

AB 1572 — Personal income taxes: corporation taxes: credits: California New Markets Tax Credit.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing federal law allows a New Markets Tax Credit to a taxpayer holding a qualified equity investment in an amount equal to the applicable percentage of the amount paid to the qualified community development entity for investment in low-income communities. The state Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill would allow a California New Markets Tax Credit under the Personal Income Tax Law and the Corporation Tax Law, in modified conformity with the federal New Markets Tax Credit, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, in a specified amount for designated qualified equity investments, as defined, in low-income communities. The bill would limit the total annual amount of credit allowed pursuant to these provisions to $100,000,000 per calendar year. The bill would impose specified duties on the Governor's Office of Business and Economic Development (GO-Biz) with regard to the application for, and allocation of, the credit. The bill would require GO-Biz to establish and impose reasonable fees upon entities that apply for the allocation of the credit, to be deposited in the California New Markets Tax Credit Account established by the bill within the California Economic Development Fund, and use the revenue, upon annual appropriation by the Legislature, to defray the cost of applying to and administering the credits, as specified. The bill would only authorize the designation of a qualified equity investment in those taxable years for which moneys are appropriated to GO-Biz to administer these credits for those taxable years. Existing law requires any bill authorizing a new personal income tax or corporation tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements, as provided. This bill would also include that additional information required for any bill authorizing a new personal or corporation income tax credit. The bill would provide that its provisions are severable. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. In committee: Held under submission.

  4. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (January 10). Re-referred to Com. on APPR.

  5. Re-referred to Com. on REV. & TAX.

  6. From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

  7. From committee: Do pass and re-refer to Com. on REV. & TAX. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 13). Re-referred to Com. on REV. & TAX.

  8. Referred to Coms. on J.,E.D., & E. and REV. & TAX.

  9. From printer. May be heard in committee April 4.

  10. Read first time. To print.

Sponsors

  • Committee on Jobs, Economic Development, and the Economy · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Committee on Jobs, Economic Development, and the Economy

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass and be re-referred to the Committee on [Appropriations]

Passed 8 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 5002
Democratic 3000
Republican 0001
Total 8003
% of votes cast 73%0%0%27%
How each member voted (11)
Member Party Vote
Burke — Yea
Levine — Yea
Quirk — Yea
Mullin — Yea
Mayes — Not Voting
Gray — Not Voting
Luz Rivas — Yea
Grayson, Timothy S. Democratic Yea
Nguyen, Stephanie Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Seyarto, Kelly Republican Not Voting

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 1572 do?
Existing federal law allows a New Markets Tax Credit to a taxpayer holding a qualified equity investment in an amount equal to the applicable percentage of the amount paid to the qualified community development entity for investment in low-income communities. The state Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill would allow a California New Markets Tax Credit under the Personal Income Tax Law and the Corporation Tax Law, in modified conformity with the federal New Markets Tax Credit, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, in a specified amount for designated qualified equity investments, as defined, in low-income communities. The bill would limit the total annual amount of credit allowed pursuant to these provisions to $100,000,000 per calendar year. The bill would impose specified duties on the Governor's Office of Business and Economic Development (GO-Biz) with regard to the application for, and allocation of, the credit. The bill would require GO-Biz to establish and impose reasonable fees upon entities that apply for the allocation of the credit, to be deposited in the California New Markets Tax Credit Account established by the bill within the California Economic Development Fund, and use the revenue, upon annual appropriation by the Legislature, to defray the cost of applying to and administering the credits, as specified. The bill would only authorize the designation of a qualified equity investment in those taxable years for which moneys are appropriated to GO-Biz to administer these credits for those taxable years. Existing law requires any bill authorizing a new personal income tax or corporation tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements, as provided. This bill would also include that additional information required for any bill authorizing a new personal or corporation income tax credit. The bill would provide that its provisions are severable. This bill would take effect immediately as a tax levy.
Who sponsors AB 1572?
AB 1572 is sponsored by Committee on Jobs, Economic Development, and the Economy.
What is the current status of AB 1572?
This bill died with 2021-2022 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1572?
Track AB 1572 free on One Click Politics — get push/email alerts when it moves.

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