CA AB2058

Establishes a tax credit for taxable years 2021-2025 for taxpayers who purchase multifamily rental housing developments or mobilehome parks from qualified developers, with credits transferred from the developer to the property seller.

Credit amount limited to $1,000,000 per transaction or 50% of federal and state capital gains taxes paid, whichever is less, with an additional per-unit cap of $20,000 per housing unit or mobilehome space.

Applies to both personal income tax (Section 17057.7) and corporation tax (Section 23610.6), with aggregate credits across both sections capped at $500,000,000, unless a budget appropriations bill specifies otherwise.

Qualified developers must be nonprofits, public entities, or resident organizations acquiring affordable housing with mandatory 55-year regulatory agreements limiting rent increases to 5% annually and requiring affordable rent limits at 60-80% of area median income.

California Tax Credit Allocation Committee must reserve credits on a first-come-first-served basis and establish minimum criteria for developer approval; Legislative Analyst's Office must review effectiveness annually through 2027.