SB 1216 Summary

• Authorizes the California Tax Credit Allocation Committee to allocate state low-income housing tax credits exceeding 30% of eligible basis in years before January 1, 2016, when it has a surplus, with state credits capped at 80% of eligible basis.

• Reduces corresponding federal tax credits to ensure combined state and federal credits do not exceed total allowable credits under federal law (Section 42 of the Internal Revenue Code).

• Applies to Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code, affecting insurance, income, and corporation tax credit allocations.

• Takes effect immediately as a tax levy.