Income and corporation taxes: credits: leased or rented property: persons receiving Section 8 assistance.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would allow a credit against those taxes to a qualified taxpayer, as defined, in an amount equal to 3% of the amount of rent or lease payments in the form of certain federal housing assistance vouchers per qualified property, defined as a dwelling or unit rented or leased to persons receiving certain federal assistance. The bill would require the taxpayer, to be eligible for the credit, to obtain verification from the appropriate local housing authority, as defined, that the property for which a credit is claimed satisfies the definition of qualified property and to provide a copy of the verification to the Franchise Tax Board. This bill would limit the credit to 5 qualified properties per taxpayer per taxable year. The bill would also provide that the credit amount is $0 for each taxable year beginning on or after January 1, 2020, and before January 1, 2025, unless otherwise specified in a bill providing for appropriations related to the Budget Act. By imposing new duties upon local government officials with respect to the verification of qualified properties, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. This bill would take effect immediately as a tax levy.