CA AB778

Establishes tax credits equal to 20% of qualified investments made in community development financial institutions for taxable years beginning January 1, 2017, through December 31, 2021, under personal income tax, corporation tax, and insurance company tax laws.

Requires minimum investment of $50,000 held for 60 months, with the entire investment received before tax credit application; institutions must use funds for community development purposes benefiting low-income communities in California.

Caps aggregate qualified investments at $50,000,000 per calendar year across all three tax types, with any unused annual amount carrying over to subsequent years; limits single institutions to 30% of annual aggregate with 10% of annual amount reserved for investments of $200,000 or less.

Prioritizes insurance company investors over all other tax credit investors and prioritizes housing applications supporting affordable rental housing, veteran housing, community-based residential programs, and self-help housing.

Requires full repayment of previously allowed credits if qualified investment is reduced or withdrawn before 60 months without reinvestment in another community development financial institution within 60 days; allows unused credits to carry forward up to four years.