Relating to: changes to the low-income housing tax credit. (FE)

AB 976 clarifies how tax credits for low-income housing projects are claimed by business entities. It modifies rules so partnerships, limited liability companies, and tax-option corporations cannot claim the credit directly; instead, their members or shareholders (including insurers who are part of such entities) may claim it based on the entity's eligible costs. The bill requires entities to calculate and distribute credit amounts to members/shareholders, with specific allocation rules for ownership interests or written agreements. It directly affects housing developers, investors, and insurers involved in low-income housing projects financed through tax-exempt bonds in the state. The changes standardize credit allocation across multiple tax code sections without altering eligibility or credit amounts.