Below is a list of California legislation related to Opportunity Zones.
Legislation from the 2019-20 Legislative Session
Budget Trailer Bill (Administration) Opportunity Zone State Tax Conformity
This proposal authorizes special conforming tax treatment for capital gains invested in qualified California Opportunity Zone projects, including investments in certain affordable housing and energy projects. Status: As of August 24, 2019, neither the Senate or Assembly Budget Committees have scheduled hearings on the most recent proposal. It is, however, anticipated that the proposal will be reviewed by one or both of the committees prior to the close of the legislative session on September 13, 2019. Administration Fact Sheet
AB 114 (Aguiar-Curry) Technical Changes to Timber Pilot Projects
This bill requires the Strategic Growth Council (SGC) to create a scoping plan for the state to meet its organic waste management mandates, goals and targets. The bill also makes technical changes the pilot projects on innovative forest products which are to be located in Opportunity Zones, pursuant to AB 2518 from the 2017-18 Session. Status: Held in the Assemply Appropriations Committee, May 2019.
AB 742 (Cervantes) Place Based Economic Strategies
AB 791 (Gabriel) Opportunity Zones Housing Credit
AB 1259 (L. Rivas, Cervantes, and E. Garcia) California New Markets Tax Credit
AB 1479 (Cervantes) Opportunity Zone Credit Enhancement
This bill establishes a credit enhancement program through the California Infrastructure and Economic Development Bank for projects located in an Opportunity Zone that meet certain social, economic, and environmental criteria, including creating wealth and asset building within the local community. This is part of the JEDE Committee’s four-bill package related to Opportunity Zones. Status: Held in the Assembly Committee on Appropriations, May 2019.
AB 1726 (Cervantes) Work Opportunity Tax Credit
AB 1873 (Assembly Natural Resources) State Board of Foresry and Fire Protection
SB 25 (Caballero and Glazer) Expedited Judicial Review Under CEQA
SB 315 (Hertzberg) California Opportunity Fund
SB 635 (Hueso) - Gross Income Exclusion for Opportunity Zones
Legislation from 2017-18 Session
AB 1445 (Reyes) Opportunity Zone Reporting
This bill requires a qualified Opportunity Fund to provide specified information when engaging in any transaction for the sale or lease of a qualified Opportunity Zone business property which is owned by the city or county that is located within a designated qualified Opportunity Zone. This information includes: (1) A timeline for completion of the investment activity on the property; (2) An estimation of the number of jobs that will be created as a result of the investment activity on the property; and (3) A summary of local workforce utilization strategies that will be employed as part of the investment activity on the property.
Status: Signed by the Governor, Chapter 380, Statutes of 2018.
AB 2518 (Aguiar-Curry) Innovative Forest Products
This bill requires the Department of Forestry and Fire Protection to identify and make recommendations on how to mitigate barriers to in-state production of mass timber and other innovative forest products. Further, the Department is required to develop a plan that proposes:
- The development of a mass timber production facility, located within 30 miles of two actively producing lumber mills than can provide feedstock, as specified.
- The development of three computer numeric control (CNC) machining operations that have the capability of cutting mass timber panels, as specified. At least one of the facilities is required to be co-located with the mass timber production facility noted above. The two other CNC machining operations may be located elsewhere, to the extent that the location meets the following three criteria: (1) The location is a former mill site, as specified; (2) The location is not more than 25 miles from an area impacted by a large landscape fire, as specified; and (3) The location is in or adjacent to a community designated as an Opportunity Zone, or has an average household income of 5% below the state's median household income.
- The development of two schools and two fire stations that will be constructed, to the maximum extent practicable, with mass timber.
Status: Signed by the Governor, Chapter 637, Statutes of 2018.
AB 3030 (Caballero) CEQA Exemption for Opportunity Fund Investments
This bill exempts from the California Environmental Quality Act residential and mixed-use projects with 50% affordable housing that are financed by a "qualified Opportunity Fund" and meet other specified criteria.
Status: Held in the Senate Committee on Appropriations, 2018.
SB 635 (Hueso) Office of Geographically-Targeted Economic Development
This bill establishes the Office of Geographically-Targeted Economic Development within the Governor's Office of Business and Economic Development for the purpose of assisting local communities to become private investment ready, as well as to access state resources to meet economic development needs.
Status: Signed by the Governor, Chapter 888, Statutes of 2018.