Personal Income Tax Law: Corporation Tax Law: insurance tax law: low-income housing tax credit:

Assembly Member Quirk-Silva’s measure would give holders of California’s state low-income housing tax credits the option to sell all or part of those credits through a process prescribed by the California Tax Credit Allocation Committee, rather than through the current statutory framework alone. The change would apply to credits against the personal income tax, the corporate tax, and the insurance tax, and it would preserve the existing minimum sale price requirement that a seller receive at least 80 percent of the credit’s value. The bill’s effect would be to shift the mechanism for making the sale election from a fixed statutory approach to a process set by the committee.

Mechanically, the bill would amend three provisions in the Revenue and Taxation Code to implement the sale mechanism and would keep the sale limited to credits allocated to a housing sponsor for use by projects that have a federal LIHTC component, with the sale to unrelated parties and the minimum 80 percent consideration still required. The author’s language indicates the election to sell would be made “in the manner prescribed by the California Tax Credit Allocation Committee,” aligning the sale process with agency rules and procedures. The changes focus on how and through whom the sale election is made, rather than altering the underlying credit amounts, eligibility, or allocation criteria.

The measure has a status indicating it progressed through the Legislature in 2025 and was enrolled in September 2025, with no new appropriation required. It would apply across the state LIHTC framework—affecting credits under the personal, corporate, and insurance tax regimes—by delegating to the committee the procedural design for sales while preserving the existing price floor and unrelated-party sale structure. The bill interacts with established LIHTC governance, including the committee’s role in allocation procedures and regulatory oversight, by introducing a committee-defined pathway for monetizing credits rather than a fixed statutory method.