CA AB2217

Allows a tax credit for taxable years 2021-2032 for taxpayers who sell a "qualified vacant site," equal to 50% of taxes on the capital gain in the year of sale and 50% of taxes on capital gains when construction begins (within 5 years of sale).

Defines "qualified vacant site" as undeveloped land or abandoned buildings (vacant 3+ years) surrounded by development on 2+ sides with density approvals ranging from 10-30 units per acre depending on location (nonmetropolitan, suburban, or metropolitan county).

Allocates credit among multiple owners based on percentage of ownership and allows unused credits to carry over for up to 7 additional years.

Requires county assessors to provide reports on qualified vacant site use upon request from taxpayers or the Franchise Tax Board.

Takes effect immediately as a tax levy and expires December 1, 2033; includes Legislative Analyst's Office reporting requirements on credit effectiveness biannually through 2033.