Bill Text: CA AB771 | 2015-2016 | Regular Session | Amended
Bill Title: Personal income and corporation taxes: credits: rehabilitation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB771 Detail]
Download: California-2015-AB771-Amended.html
BILL NUMBER: AB 771 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 12, 2015
INTRODUCED BY Assembly Member Atkins
FEBRUARY 25, 2015
An act to add and repeal Sections 38.10, 17053.91, and 23691 of
the Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 771, as amended, Atkins. Personal income and corporation taxes:
credits: rehabilitation.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill would allow to a taxpayer that receives a tax credit
reservation allocation a credit against
those taxes for each taxable year beginning on or after January 1,
2016, and before January 1, 2024, 2021,
in an amount, determined in modified conformity with a specified
section of the Internal Revenue Code, for rehabilitation of certified
historic structures and, under the Personal Income Tax Law, for a
qualified residence. This bill would provide for a 20% credit, or 25%
credit, of qualified rehabilitation expenditures if the structure
meets specified criteria, for rehabilitation of a certified historic
structure or a qualified residence, as provided, within the state to
be reserved and allocated by the California Tax
Credit Allocation Committee, which shall consult with the Office of
Historic Preservation, as provided , and which may adopt a
reasonable fee to cover specified expenses. The aggregate amount of
credit would be $50,000,000 per calendar year, plus unused allocation
tax credit for the preceding year, $10,000,000 of which would be set
aside for rehabilitation projects with qualified rehabilitation
expenditures of less than $1,000,000, as specified. This bill would
require the Legislative Analyst to, on an annual basis, collaborate
with the California Tax Credit Allocation Committee to review the tax
credit, as provided.
This bill would make specified findings detailing the goals,
purposes, and objectives of the above-described tax credits,
performance indicators for determining whether the credits meet those
goals, purposes, and objectives, and data collection requirements.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares that California'
s historic buildings are an important asset to communities throughout
the state, and that the preservation and restoration of these
buildings is important to enhancing civic pride, increasing tourism,
and maintaining vibrant neighborhoods.
(b) The Legislature further finds and declares all of the
following:
(1) The federal Historic Preservation Tax Incentives program,
enacted by Congress in 1986, established a 20-percent tax credit for
the rehabilitation of historic structures, which remains
in effect today. Program activity in the amount of investment dollars
reached record highs in the 1990s, before declining during the
recent recession. With the economy in general, and the real estate
market in particular, rebounding over the last several years, the
amount of rehabilitation investment in proposed projects exceeded
$5.9 billion for the second time in the program's history. The avera
ge investment in completed projects in the 2014
-15 fiscal year was $4.32 million, the third highest amount in the
program's history. The program is currently available to
California's income producing historic properties, and has
generated nearly $1.5 billion in investment during the last 10
years.
(2) While 35 states have similar state tax credits or incentives
for historic preservation, no such incentive exists in California.
(3) When used with federal historic preservation tax credits,
state historic rehabilitation tax credits provide an important
financial incentive for reinvestment in the historic cores of
communities in the post-redevelopment economy. Historic preservation
tax incentives generate jobs, enhance property values, create
affordable housing, and augment revenues for federal, state, and
local governments. Through the federal program, vacant or
underutilized schools, warehouses, factories, apartments, churches,
retail stores, hotels, houses, farms, and offices throughout the
country have been restored to life in a manner that maintains their
historic character.
(3)
(4) States that have partnered a state incentive with
the federal Historic Preservation Tax Incentive program
have reaped significant economic development benefits, including
construction and building industry job creation, increased state tax
revenues through increased employment and wages, increased local
property tax revenues through increased property values, and
increased local tax revenues through sales taxes and heritage
tourism.
(5) The federal rehabilitation tax credit applies specifically to
income-producing historic properties, and throughout its history has
leveraged many times its cost in private expenditures on historic
preservation. This program is the largest federal program
specifically supporting historic preservation, generating over $37
billion in historic preservation activity since 1976. During the
2014-15 fiscal year, the National Park Service approved 1,156
proposed projects, representing an estimated $5.98 billion of
investment to restore and rehabilitate historic buildings.
(6) The federal Historic Preservation Tax Incentives program
remains an outstanding means of leveraging private investment in the
adaptive reuse and preservation of historic buildings. The program
continues to help stimulate economic recovery in older communities,
both large and small, throughout the nation, and created an estimated
77,762 jobs in 2014.
(4)
(7) Over the last 10 years, California has had 129
projects qualify for the federal Historic Preservation Tax Incentives
program. These projects have been located in 20 different counties.
(5)
(8) As California communities continue to adjust and
adapt to the dissolution of redevelopment agencies, proven tools are
still needed to incentivize economic development and revitalize
economically distressed areas.
SEC. 2. Section 38.10 is added to the Revenue and Taxation Code,
to read:
38.10. (a) The Legislative Analyst shall, on an annual basis
beginning January 1, 2017, collaborate with the California Tax Credit
Allocation Committee to review the effectiveness of the tax credits
allowed by Sections 17053.91 and 23691. The review shall include, but
is not limited to, an analysis of the demand for the tax credit, the
types and uses of projects receiving the tax credit, the jobs
created by the use of the tax credits, and the economic impact of the
tax credits.
(b) It the intent of the Legislature to enact legislation to
comply with the requirements of Section 41.
(c)
(b) This section shall remain in effect only until
January 1, 2025, 2022, and as of that
date is repealed , unless a later enacted statute, that is
enacted before January 1, 2025, deletes or extends that date
.
SEC. 3. Section 17053.91 is added to the Revenue and Taxation
Code, to read:
17053.91. For each taxable year beginning on or after January 1,
2016, and before January 1, 2024, 2021,
there shall be allowed to a taxpayer that receives a tax credit
reservation allocation a credit against
the "net tax," as defined in Section 17039, an amount determined in
accordance with Section 47 of the Internal Revenue Code, except as
follows:
(a) (1) In lieu of the percentages specified in Section 47(a) of
the Internal Revenue Code, except as provided in paragraph (2), the
applicable percentage shall be 20 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure.
(2) The applicable percentage shall be 25 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure if that certified historic structure meets one of the
following criteria:
(A) The rehabilitated structure is located on federal surplus
property, if obtained by a local agency under Section 54142 of the
Government Code, on surplus state real property, as defined by
Section 11011.1 of the Government Code, or on surplus land, as
defined by subdivision (b) of Section 54221 of the Government Code.
(B) The rehabilitated structure includes affordable housing for
lower-income households, as defined by Section 50079.5 of the Health
and Safety Code.
(C) The structure is located in a designated census tract, as
defined in paragraph (7) of subdivision (b) of Section 17053.73.
(D) The structure is a part of a military base reuse authority
established pursuant to Title 7.86 (commencing with Section 67800) of
the Government Code.
(E) The structure is a transit-oriented development that is a
higher density, mixed-use development within a walking distance of
one-half mile of a transit station.
(3) (A) The credit shall be allowed for qualified rehabilitation
expenditures for a qualified residence determined by the California
Tax Credit Allocation Committee and the Office of Historic
Preservation to have a public benefit in the year of completion in
the percentages specified in paragraphs (1) and (2), as applicable,
except that the credit shall only be allowed in an amount equal to or
more than five thousand dollars ($5,000) but not exceeding
twenty-five thousand dollars ($25,000). A taxpayer shall only be
allowed a credit pursuant to this paragraph once every 10 taxable
years.
(B) Section 47(c)(1)(C)(ii) of the Internal Revenue Code, relating
to special rule for phased rehabilitation, shall not apply.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Certified historic structure" has the same meaning as defined
in Section 47(c)(3) of the Internal Revenue Code and
additionally means Code, that is a structure in
this state that and is listed on the
California Register of Historical Resources.
(2) "Qualified residence" has the same meaning as that term is
defined in Section 163(h)(4) of the Internal Revenue Code, that will
be owned and occupied by an individual taxpayer who has a modified
adjusted gross income, as defined by Section 86(b)(2) of the Internal
Revenue Code, of two hundred thousand dollars ($200,000) or less, as
the taxpayer's principal residence or what will be the taxpayer's
principal residence within two years after the rehabilitation of the
residence.
(3) (A) "Qualified rehabilitation expenditure" has the same
meaning as that term is defined in Section 47(c)
47(c)(2) of the Internal Revenue Code, except that
qualified rehabilitation expenditures may include expenditures in
connection with the rehabilitation of a building without regard to
whether any portion of the building is or is reasonably expected to
be tax-exempt use property.
(B) "Qualified rehabilitation expenditure" has the same
meaning as that term is defined in Section 47(c)(2) of the Internal
Revenue Code and also means rehabilitation expenditures
incurred by the taxpayer with respect to a qualified residence for
the rehabilitation of the exterior of the building or rehabilitation
necessary for the functioning of the home, including, but not limited
to, rehabilitation of the electrical, plumbing, or foundation of the
qualified residence.
(c) (1) To be eligible for the credit allowed by this section, a
taxpayer shall request a tax credit reservation
allocation from the California Tax Credit Allocation
Committee, in the form and manner prescribed by the California Tax
Credit Allocation Committee.
(2) To obtain a tax credit reservation,
allocation, the taxpayer shall provide necessary information,
as determined by the California Tax Credit Allocation Committee.
(3) A tax credit reservation allocation
provided to a taxpayer shall not constitute a determination by
the California Tax Credit Allocation Committee with respect to any of
the requirements of this section regarding a taxpayer's eligibility
for the credit authorized by this section.
(4) If a taxpayer receives a tax credit reservation
allocation but rehabilitation has not commenced
within 18 months of the issuance of the tax credit
reservation, allocation, the tax credit
reservation allocation shall be forfeited and
the credit amount associated with the tax credit reservation
allocation shall be treated as an unused
allocation tax credit amount.
(d) A deduction shall not be allowed under this part for any
expense for which a credit is allowed by this section.
(e) If a credit is allowed under this section with respect to any
property, the basis of that property shall be reduced by the amount
of the credit allowed.
(f) 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 year, and the seven succeeding years, if necessary,
until the credit is exhausted.
(g) For purposes of this section, the California Tax Credit
Allocation Committee shall do the following:
(1) On and after January 1, 2016, and before January 1,
2024, reserve and 2021, allocate tax credits to
applicants.
(2) Establish a procedure for applicants to file with the
California Tax Credit Allocation Committee a written application, on
a form jointly prescribed by that office and the Office of Historic
Preservation for the reservation allocation
of the tax credit.
(3) Establish criteria consistent with the requirements of this
section, for reserving allocating tax
credits. A taxpayer shall not receive a tax credit
reservation allocation unless the following
criteria are met. Criteria shall include, but are not limited to, the
following:
(A) The number of jobs created by the rehabilitation project, both
during and after the rehabilitation of the structure.
(B) The expected increase in state and local tax revenues derived
from the rehabilitation project, including those from increased wages
and property taxes.
(C) Any additional incentives or contributions included in the
rehabilitation project from federal, state, or local governments.
(D) For the qualified rehabilitation expenditures with respect to
a qualified residence, the rehabilitation has a public benefit, as
determined jointly with the Office of Historic Preservation.
(4) Determine and designate, in consultation with the Office of
Historic Preservation, applicants that meet the requirements of this
section to ensure that the rehabilitation project meets the Secretary
of the Interior's Standards for Rehabilitation, as found in Part 67
of Title 36 of the Code of Federal Regulations.
(5) Process and approve, or reject, all tax credit
reservation allocation applications.
(6) (A) Subject to the annual cap established as provided in
subdivision (h), allocate an aggregate amount of credits under this
section and Section 23691, and allocate any carryover of unallocated
credits from prior years.
(B) A taxpayer shall be allocated a tax credit pursuant to the
taxpayer's tax credit reservation allocation
upon receipt by the California Tax Credit Allocation Committee
of a cost certification for the qualified rehabilitation
expenditures. For projects with qualified rehabilitation expenditures
in excess of two hundred fifty thousand dollars ($250,000), the cost
certification shall be issued by a licensed certified public
accountant.
(7) Certify tax credits allocated to taxpayers.
(8) Provide the Franchise Tax Board an annual list of the
taxpayers that were allocated a credit pursuant to this section and
Section 23691, including each taxpayer's taxpayer identification
number, and the amount allocated to each taxpayer.
(9) Establish procedures for the recapture of amounts allocated
for a tax credit allowed to a taxpayer for the rehabilitation of a
qualified residence if the taxpayer does not use the qualified
residence as his or her principal residence within two years after
the rehabilitation of the residence.
(h) (1) The aggregate amount of credits that may be allocated in
any calendar year pursuant to this section and Section 23691 shall be
an amount equal to the sum of all of the following:
(A) Fifty million dollars ($50,000,000) in tax credits for the
2016 calendar year and each calendar year thereafter, through and
including the 2023 2020 calendar year.
(B) The unused allocation tax credit amount, if any, for the
preceding calendar year.
(2) Notwithstanding the foregoing, the California Tax Credit
Allocation Committee shall set aside ten million dollars
($10,000,000) of tax credits that may b e allocated
each calendar year for taxpayers in the aggregate,
pursuant to this paragraph and paragraph (2) of subdivision (h) of
Section 23691, with qualified rehabilitation expenditures of
less than one million dollars ($1,000,000). To the extent that this
amount is not fully reserved allocated
in any calendar year, the unused portion shall become available for
reservation allocation to other
taxpayers.
(i) In the case of any application for tax credits by an entity
treated as a partnership or "S" corporation for
income tax purposes:
(1) (A) Credits awarded to a
partnership shall be allocated to the partners of that partnership
in accordance with the partnership agreement, regardless of how the
federal historic rehabilitation tax credit with respect to the
project is allocated to the partners, or whether the allocation of
the credit under the terms of the partnership agreement has
substantial economic effect, within the meaning of Section 704(b) of
the Internal Revenue Code.
(B)
(2) To the extent the allocation of the credit to a
partner under this section lacks substantial economic effect, any
loss or deduction otherwise allowable under this part that is
attributable to the sale or other disposition of that partner's
partnership interest made prior to the expiration of the tax credit
recapture period for the project described in subparagraph (A) shall
not be allowed in the taxable year in which the sale or other
disposition occurs, but shall instead be deferred until, and treated
as if, it occurred in the first taxable year immediately following
the taxable year in which the tax credit recapture period expires for
the project described in subparagraph (A). The credits awarded to a
partnership shall be allocated to the partners of that partnership in
accordance with the partnership agreement.
(2) Credits awarded to an "S" corporation shall be allocated among
the shareholders of that "S" corporation pro rata in accordance with
their respective pro rata shares, determined in accordance with
Subchapter S of Chapter 1 of the Internal Revenue Code and the
regulations promulgated thereunder.
(j) Section 183 of the Internal Revenue Code shall not apply with
respect to the credit allowed by this section.
(k)
(j) For purposes of this section, the provisions of
subsection (a) of Section 50 of the Internal Revenue Code shall
apply.
(l)
(k) Notwithstanding any other provision of this part, a
credit allowed pursuant to this section may reduce the tax imposed
under Section 17041 or 17048 plus the tax imposed under Section
17504, relating to the separate tax on lump-sum distributions, below
the tentative minimum tax.
(m)
(l) This section shall remain in effect regardless of
the expiration or repeal of Section 47 of the Internal Revenue Code,
relating to rehabilitation credit.
(n)
(m) The California Tax Credit Allocation Committee may
adopt a reasonable fee in an amount sufficient to cover the expenses
incurred by the California Tax Credit Allocation Committee and the
Office of Historic Preservation in fulfilling the responsibilities
described in paragraphs (4) and (5) of subdivision (g) and paragraphs
(4) and (5) of subdivision (g) of Section 23691
(o)
(n) This section shall remain in effect only until
December 1, 2024, 2021, and as of that
date is repealed.
SEC. 4. Section 23691 is added to the Revenue and Taxation Code,
to read:
23691. For each taxable year beginning on or after January 1,
2016, and before January 1, 2024, 2021,
there shall be allowed to a taxpayer that receives a tax credit
reservation allocation a credit against
the "tax," as defined in Section 23036, an amount determined in
accordance with Section 47 of the Internal Revenue Code, except as
follows:
(a) (1) In lieu of the percentages specified in Section 47(a) of
the Internal Revenue Code, except as provided in paragraph (2), the
applicable percentage shall be 20 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure.
(2) The applicable percentage shall be 25 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure if that certified historic structure meets one of the
following criteria:
(A) The rehabilitated structure is located on federal surplus
property, if obtained by a local agency under Section 54142 of the
Government Code, on surplus state real property, as defined by
Section 11011.1 of the Government Code, or on surplus land, as
defined by subdivision (b) of Section 54221 of the Government Code.
(B) The rehabilitated structure includes affordable housing for
lower-income households, as defined by Section 50079.5 of the Health
and Safety Code.
(C) The structure is located in a designated census tract, as
defined in paragraph (7) of subdivision (b) of Section 17053.73.
(D) The structure is a part of a military base reuse authority
established pursuant to Title 7.86 (commencing with Section 67800) of
the Government Code.
(E) The structure is a transit-oriented development that is a
higher density, mixed-use development within a walking distance of
one-half mile of a transit station.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Certified historic structure" has the same meaning as defined
in Section 47(c)(3) of the Internal Revenue Code and
additionally means Code, that is a structure in
this state that and is listed on the
California Register of Historical Resources.
(2) "Qualified rehabilitation expenditure" has the same meaning as
that term is defined in Section 47(c) 47(c)
(2) of the Internal Revenue Code, except that qualified
rehabilitation expenditures may include expenditures in connection
with the rehabilitation of a building without regard to whether any
portion of the building is or is reasonably expected to be tax exempt
use property.
(c) (1) To be eligible for the credit allowed by this section, a
taxpayer shall request a tax credit reservation
allocation from the California Tax Credit Allocation
Committee, in the form and manner prescribed by the California Tax
Credit Allocation Committee.
(2) To obtain a tax credit reservation,
allocation, the taxpayer shall provide necessary information,
as determined by the California Tax Credit Allocation Committee.
(3) A tax credit reservation allocation
provided to a taxpayer shall not constitute a determination by
the California Tax Credit Allocation Committee with respect to any of
the requirements of this section regarding a taxpayer's eligibility
for the credit authorized by this section.
(4) If a taxpayer receives a tax credit reservation
allocation but rehabilitation has not commenced
within 18 months of the issuance of the tax credit
reservation, allocation, the tax credit
reservation allocation shall be forfeited and
the credit amount associated with the tax credit reservation
allocation shall be treated as an unused
allocation tax credit amount.
(d) A deduction shall not be allowed under this part for any
expense for which a credit is allowed by this section.
(e) If a credit is allowed under this section with respect to any
property, the basis of that property shall be reduced by the amount
of the credit allowed.
(f) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the seven succeeding years, if necessary, until
the credit is exhausted.
(g) For purposes of this section, the California Tax Credit
Allocation Committee shall do the following:
(1) On and after January 1, 2016, and before January 1,
2024, 2021, reserve and
allocate tax credits to applicants.
(2) Establish a procedure for applicants to file with the
California Tax Credit Allocation Committee a written application, on
a form jointly prescribed by that office and the Office of Historic
Preservation for the reservation allocation
of the tax credit.
(3) Establish criteria consistent with the requirements of this
section, for reserving allocating tax
credits. A taxpayer shall not receive a tax credit
reservation allocation unless the following
criteria are met. Criteria shall include, but are not limited to, the
following:
(A) The number of jobs created by the rehabilitation project, both
during and after the rehabilitation of the structure.
(B) The expected increase in state and local tax revenues derived
from the rehabilitation project, including those from increased wages
and property taxes.
(C) Any additional incentives or contributions included in the
rehabilitation project from federal, state, or local governments.
(4) Determine and designate, in consultation with the Office of
Historic Preservation, applicants that meet the requirements of this
section to ensure that the rehabilitation project meets the Secretary
of the Interior's Standards for Rehabilitation, as found in Part 67
of Title 36 of the Code of Federal Regulations.
(5) Process and approve, or reject, all tax credit
reservation allocation applications.
(6) (A) Subject to the annual cap established as provided in
subdivision (h), allocate an aggregate amount of credits under this
section and Section 17053.91, and allocate any carryover of
unallocated credits from prior years.
(B) A taxpayer shall be allocated a tax credit pursuant to the
taxpayer's tax credit reservation allocation
upon receipt by the California Tax Credit Allocation Committee
of a cost certification for the qualified rehabilitation
expenditures. For projects with qualified rehabilitation expenditures
in excess of two hundred fifty thousand dollars ($250,000), the cost
certification shall be issued by a licensed certified public
accountant.
(7) Certify tax credits allocated to taxpayers.
(8) Provide the Franchise Tax Board an annual list of the
taxpayers that were allocated a credit pursuant to this section and
Section 17053.91 including each taxpayer's taxpayer identification
number, and the amount allocated to each taxpayer.
(h) (1) The aggregate amount of credits that may be allocated in
any calendar year pursuant to this section and Section 17053.91 shall
be an amount equal to the sum of all of the following:
(A) Fifty million dollars ($50,000,000) in tax credits for the
2016 calendar year and each calendar year thereafter, through and
including the 2023 2020 calendar year.
(B) The unused allocation tax credit amount, if any, for the
preceding calendar year.
(2) Notwithstanding the foregoing, the California Tax Credit
Allocation Committee shall set aside ten million dollars
($10,000,000) of tax credits that may be allocated each
calendar year for taxpayers in the aggregate, pursuant to this
paragraph and paragraph (2) of subdivision (h) of Section 17053.91,
with qualified rehabilitation expenditures of less than one
million dollars ($1,000,000). To the extent that this amount is not
fully reserved allocated in any
calendar year, the unused portion shall become available for
reservation allocation to other taxpayers.
(i) In the case of any application for tax credits by an entity
treated as a partnership or "S" corporation for
income tax purposes:
(1) (A) Credits awarded to a
partnership shall be allocated to the partners of that partnership
in accordance with the partnership agreement, regardless of how the
federal historic rehabilitation tax credit with respect to the
project is allocated to the partners, or whether the allocation of
the credit under the terms of the partnership agreement has
substantial economic effect,
within the meaning of Section 704(b) of the Internal Revenue Code.
(B)
(2) To the extent the allocation of the credit to a
partner under this section lacks substantial economic effect, any
loss or deduction otherwise allowable under this part that is
attributable to the sale or other disposition of that partner's
partnership interest made prior to the expiration of the tax credit
recapture period for the project described in subparagraph (A) shall
not be allowed in the taxable year in which the sale or other
disposition occurs, but shall instead be deferred until, and treated
as if, it occurred in the first taxable year immediately following
the taxable year in which the tax credit recapture period expires for
the project described in subparagraph (A). The credits awarded to a
partnership shall be allocated to the partners of that partnership in
accordance with the partnership agreement.
(2) Credits awarded to an "S" corporation shall be allocated among
the shareholders of that "S" corporation pro rata in accordance with
their respective pro rata shares, determined in accordance with
Subchapter S of Chapter 1 of the Internal Revenue Code and the
regulations promulgated thereunder.
(j) Section 183 of the Internal Revenue Code shall not apply with
respect to the credit allowed by this section.
(k)
(j) For purposes of this section, the provisions of
subsection (a) of Section 50 of the Internal Revenue Code shall
apply.
(l)
(k) Notwithstanding any other provision of this part, a
credit allowed pursuant to this section may reduce the "tax" below
the tentative minimum tax, as defined by paragraph (1) of subdivision
(a) of Section 23455.
(m)
(l) This section shall remain in effect regardless of
the expiration or repeal of Section 47 of the Internal Revenue Code,
relating to rehabilitation credit.
(n)
(m) The California Tax Credit Allocation Committee may
adopt a reasonable fee in an amount sufficient to cover the expenses
incurred by the California Tax Credit Allocation Committee and the
Office of Historic Preservation in fulfilling the responsibilities
described in paragraphs (4) and (5) of subdivision (g) and paragraphs
(4) and (5) of subdivision (g) of Section 17053.91.
(o)
(n) This section shall remain in effect only until
December 1, 2024, 2021, and as of that
date is repealed.
SEC. 5. For the purposes of complying with Section
41 of the Revenue and Taxation Code, the Legislature finds and
declares as follows:
(a) The specific goals, purposes, and objectives that the tax
credits allowed by this act will achieve are as follows:
(1) Leveraging two hundred million dollars ($200,000,000) in
private investment.
(2) Creating 1,600 construction jobs and an additional 1,250
ongoing jobs.
(3) Creating four hundred million dollars ($400,000,000) in
economic activity.
(b) Detailed performance indicators for the Legislature to use in
determining whether the tax credits allowed by this act meet those
goals, purposes, and objectives:
(1) The amount of private sector investment enabled by allocation
of the credits allowed by this act.
(2) The number of construction jobs created as a result of this
investment.
(3) The projected number of long-term jobs associated with the use
of rehabilitated historic buildings and the overall economic
activity associated with the rehabilitation of historic buildings
facilitated by the credits allowed by this act.
(c) The data collection requirements for determining whether the
tax credit is meeting, failing to meet, or exceeding those specific
goals, purposes, and objectives are as follows:
(1) To assist the Legislature in measuring the determining whether
the tax credits allowed by this act meet the goals, purposes, and
objectives specified in subdivision (a), and in carrying out his or
her duties under Section 38.10 of the Revenue and Taxation Code, the
Legislative Analyst may request information from the California Tax
Credit Allocation Committee and the Office of Historic Preservation
relating to projects approved for the tax credits allowed by this
act.
(2) The California Tax Credit Allocation Committee and the Office
of Historic Preservation shall provide any data requested by the
Legislative Analyst pursuant to this subdivision.
SEC. 5. SEC. 6. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
