Bill Text: CA AB1891 | 2021-2022 | Regular Session | Amended
Bill Title: Income tax credits: leased or rented property: persons receiving housing services or assistance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-05-02 - In committee: Hearing for testimony only. [AB1891 Detail]
Download: California-2021-AB1891-Amended.html
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Amended
IN
Assembly
April 05, 2022 |
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Amended
IN
Assembly
March 24, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 1891
| Introduced by Assembly Member Choi |
February 09, 2022 |
An act to add and repeal Sections 17053.82 and 23682 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1891, as amended, Choi.
Income tax credits: leased or rented property: persons receiving housing services or assistance.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes to a taxpayer that owns a unit rented to, or leased by, persons receiving housing services or assistance, as specified, at below market rates, in an amount equal to the difference between the annual current rental market rate for the unit and the annual below market rate the unit is rented at, not to exceed $500 for each qualified property owned by the taxpayer, and
not to exceed $5,000 $5,000, cumulatively, per taxpayer per taxable year.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
The bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.82 is added to the Revenue and Taxation Code, to read:17053.82.
(a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a taxpayer that owns qualified property, in an amount equal to(b) For purposes of this section, both of the following shall apply:
(1) “Below market rate” means a rental price that is lower than the current rental market rate for that unit.
(2) “Housing services” means services provided by the state for low-income families, including, but not limited to, the California Work Opportunity and Responsibility to Kids (CalWORKs) Housing Support Program (Article 3.3 (commencing with Section 11330) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code), the CalWORKs Homeless Assistance Program (Section 11450 of the
Welfare and Institutions Code), the Bringing Families Home Program (Article 6 (commencing with Section 16523) of Chapter 5 of Part 4 of Division 9 of the Welfare and Institutions Code), the Housing and Disability Income Advocacy Program (Chapter 17 (commencing with Section 18999) of Part 6 of Division 9 of the Welfare and Institutions Code), and the Home Safe Program (Section 15771 of the Welfare and Institutions Code).
(3) “Qualified amount” means the difference between the annual current rental market rate for that unit and the annual below market rate the unit is rented at, not to exceed five hundred dollars ($500) for each qualified property.
(3)
(4) “Qualified property” means a unit rented to, or leased by, qualified persons at below market rates.
(4)
(5) “Qualified persons” means persons receiving housing services or assistance from a nonprofit organization or from the state.
(5)
(6) “Unit” means a house, apartment, or mobilehome.
(c) A taxpayer that owns a proportional share of the qualified property may claim the credit allowed by this section based upon the taxpayer’s ownership share of the property.
(d) A taxpayer claiming the credit allowed by this section shall submit documentation, in a form and manner specified by the Franchise Tax Board, showing the following for each qualified property:
(1) The below market rate for that property.
(2) The housing service or assistance from a nonprofit organization
or from the state received by the qualified person
renting or leasing that property.
(e) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding 7 years if necessary, until the credit is exhausted.
(f) (1) For purposes of complying with Section 41, with respect to this section and Section 23682, the Legislature finds and declares that the goal of the credits is to reduce homelessness by providing a tax incentive to property owners that rent or lease property at below market rates to persons receiving housing services or assistance from a nonprofit organization.
(2) The effectiveness of the credits shall be measured by the number of taxpayers claiming the credit.
(3) On or before January 1, 2027, the Franchise Tax Board shall provide the number of taxpayers claiming the credit in this section and in Section 23682 to the Legislature, submitted pursuant to Section 9795 of the Government Code. The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2.
(g) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
SEC. 2.
Section 23682 is added to the Revenue and Taxation Code, to read:23682.
(a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the “tax,” as defined in Section 23036, to a taxpayer that owns qualified property, in an amount equal to(b) For purposes of this section, both of the following shall apply:
(1) “Below market rate” means a rental price that is lower than the current rental market rate for that unit.
(2) “Housing services” means services provided by the state
for low-income families, including, but not limited to, the California Work Opportunity and Responsibility to Kids (CalWORKs) Housing Support Program (Article 3.3 (commencing with Section 11330) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code), the CalWORKs Homeless Assistance Program (Section 11450 of the Welfare and Institutions Code), the Bringing Families Home Program (Article 6 (commencing with Section 16523) of Chapter 5 of Part 4 of Division 9 of the Welfare and Institutions Code), the Housing and Disability Income Advocacy Program (Chapter 17 (commencing with Section 18999) of Part 6 of Division 9 of the Welfare and Institutions Code), and the Home Safe Program (Section 15771 of the Welfare and Institutions Code).
(3) “Qualified amount” means the difference between the annual current rental market rate for that unit and the annual below market rate the unit is rented at, not to exceed five hundred dollars ($500) for each qualified property.
(3)
(4) “Qualified property” means a unit rented to, or leased by, qualified persons at below market rates.
(4)
(5) “Qualified persons” means persons receiving housing services or assistance from a nonprofit organization or from the state.
(5)
(6) “Unit” means a house, apartment, or mobilehome.
(c) A taxpayer that owns a proportional share of the qualified property may claim the credit allowed by this section based upon the taxpayer’s ownership share of the property.
(d) A taxpayer claiming the credit allowed by this section shall submit documentation, in a form and manner
specified by the Franchise Tax Board, showing the following for each qualified property:
(1) The below market rate for that property.
(2) The housing service or assistance from a nonprofit organization or from the state received by the qualified person renting or leasing that property.
(e) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “net tax” “tax” in the following taxable year, and succeeding 7
years if necessary, until the credit is exhausted.
(f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
