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

Assembly Member Quirk-Silva's legislation modifies California's low-income housing tax credit program by revising how taxpayers can sell their allocated credits. The bill amends three sections of the Revenue and Taxation Code to centralize oversight of credit sales under the California Tax Credit Allocation Committee (CTCAC).

Under the new framework, taxpayers must follow CTCAC-prescribed procedures when electing to sell their credits, rather than conducting sales independently. The legislation maintains the requirement that credits be sold for at least 80% of their value while adding new certification and reporting obligations. Housing sponsors must provide certified statements from public accountants detailing credit eligibility, placement in service dates, and federal credit period commencement.

The CTCAC gains authority to review taxpayer certifications to verify calculations and ensure compliance with allocation rules. Original credit recipients remain liable for program obligations after sales, though purchasers can utilize the credits as the original recipient could. The Committee must report all credit sales to the Franchise Tax Board annually.

These changes apply to projects receiving preliminary credit reservations from January 1, 2016 onward. The amendments aim to standardize credit transfer procedures while maintaining program flexibility through secondary market sales. By centralizing oversight under the CTCAC, the legislation seeks to enhance transparency and consistency in how low-income housing tax credits are allocated and traded.

The bill preserves existing provisions for rural housing set-asides, farmworker housing allocations, and credit period requirements while focusing primarily on reforming the administrative framework for credit sales and transfers.