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History of California New Markets Tax Credit Program

The California Legislature has considered legislation related to the New Market Tax Credit Model for no less than six times in the last six years.  Below is information on each of these measures including votes and final status. 

AB 185 (E. Garcia and Medina) State New Market tax Credit:  This bill would have authorized a establishment of a New Market Tax Credit for qualified investments in low-income communities beginning in year 2017.  The NMTC Program would have been administered through the Governor's Office of Business and Economic Development.  The bill authorized $40 million in tax credits over a five-year period for a total program of $200 million in credits.  Total private investment raised is estimated at $512 million.  Tax credit authority comes from the reallocation of the unused portion of the State Sales and Use Tax Exclusion Program.  Status:  Returned to the Assembly Desk by the Assembly Appropriations Committee in 2016.
 

  • Passed the Assembly Committee on Jobs, Economic Development, and the Economy on a 8 to 0 vote (April 2015).
     
  • Passed the Assembly Committee on Revenue and Taxation on a 8 to 0 vote (May 2015).

AB 1399 (Medina and V. Manuel Pérez) State New Market Tax Credit:   This bill would have authoirzed  the creation of a New Markets Tax Credit for qualified investments made in low income communities beginning in the 2015 tax year.  The NMTC Program would have been administered through the Governor's Office of Business and Economic Development.  The bill authorized $40 million in tax credits over a five-year period for a total program of $200 million in credits.  Total private investment raised is estimated at $512 million.  Tax credit authority comes from the reallocation of the unused portion of the State Sales and Use Tax Exclusion Program.  Status:  Vetoed by the Governor in 2014.
 

  • Passed the Senate Governance and Finance Committee on an 7 to 0 vote (June 2014).
     
  • Passed the Senate Committee on Appropriations on a 5 to 0 vote (August 2014).
     
  • Passed the Senate Floor on a 34 to 0 vote (August 2014).

AB 305 (V. Manuel Pérez) State New Market Tax Credit:   This bill would have authorized the creation of a New Markets Tax Credit for qualified investments made in low income communities beginning in the 2013 tax year.  The NMTC Program would have been administered through the California Tax Credit Allocation Committee (TCAC).  The bill authorized $30 million in tax credits over a seven-year period for a total program of $200 million.  Total private investment raised is estimated at $512 million.  Tax credit authority came through the elimination of the underutilized Small Business New Hire Credit.  Status:  Held in the Assembly Committee on Appropriations in 2013.
 

  • Passed the Assembly Committee on Jobs, Economic Development, and the Economy on an 8 to 0 vote (April 2013).
     
  • Passed the Assembly Committee on Revenue and Taxation on a 9 to 0 vote (May 2013).

AB 2037 (Davis and V. Manuel Pérez) State New Market Tax Credit:  This bill would have authorized the creation of a New Markets Tax Credit for qualified investments made in low income communities beginning in the 2011 tax year.   The NMTC Program would have been administered through the California Tax Credit Allocation Committee (TCAC).  Tax credit authority came through the elimination of the underutilized Small Business New Hire Credit.  Status:  Held in the Assembly Committee on Appropriations in 2011.
 

  • Passed the Assembly Committee on Jobs, Economic Development, and the Economy on a 4 to 0 vote (April 2012).
     
  • Passed the Assembly Committee on Revenue and Taxation on an 8 to 0 vote (May 2012).

AB 643 (Davis and V. Manuel Pérez) State New Market Tax Credit:  This bill would have created a New Markets Tax Credit for qualified investments made in low income communities beginning in the 2012 tax year.   The State Treasurer’s Office would administer the new credit program and allocate credits of up to $50 million per year for a total amount equal to $300 million over six years.  Status:  Held in the Assembly Committee on Appropriations in 2012.
 

  • Passed the Assembly Committee on Jobs, Economic Development and the Economy on a 4 to 0 vote (January 2012).

SB 1316 (Romero) State New Market Tax Credit:  This bill would have authorized the creation of a New Markets Tax Credit for qualified investments made in low income communities beginning in the 2011 calendar year.  The State Treasurer’s Office would administer the new credit program and allocate credits in an amount equal to the estimated revenue gains resulting from the temporary elimination of specified like-kind property exchanges.   Status:  Died on the Senate inactive file in 2010.
 

  • Passed the Senate Revenue and Taxation Committee on a 3 to 0 vote (June 2010).
     
  • Passed the Senate Appropriations Committee on a 7 to 4 vote (August 2010).

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