17053.35.
(a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed as a credit against the “net tax,” as that term is defined in Section 17039, of a taxpayer an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:
(1) “Domestic violence” shall have the same definition as that term is defined in Section 6211 of the Family Code.
(2) “Qualified amount” means the difference between the fair market rental value of qualified rental property and the amount realized in rent and other revenues resulting from the leasing
of the qualified rental property to a qualified nonprofit.
(3) “Qualified nonprofit” means a nonprofit organization dedicated to assisting survivors of domestic violence by offering housing below market rates.
(4) “Qualified rental property” means real property leased by a taxpayer to a qualified nonprofit for the purpose of providing housing below market rates to survivors of domestic violence.
(c) Upon request by the Franchise Tax Board, the taxpayer shall provide substantiation of the fair market rental value of qualified rental property, as determined by either of the following methods:
(1) The fair market rental value determined by a comparative analysis prepared by an independent real estate broker. The comparative analysis shall be performed by a
qualified, licensed professional who acts within the scope of the broker’s license, who, at a minimum, meets the standards for brokers, as specified in Chapter 6 (commencing with Section 2705) of Title 10 of the California Code of Regulations, and the comparatives shall be made in accordance with Section 200.465(a) of Title 2 of the Code of Federal Regulations.
(2) The fair market rental value determined by an independent appraisal. The appraisal shall be performed by a qualified, licensed professional appraiser who, at a minimum, meets standards for appraisers as specified in Chapter 6.5 (commencing with Section 3500) of Title 10 of the California Code of Regulations.
(d) This section shall remain operative only until December 1, 2028, and as of that date is repealed.