AB 3101 Summary

• Creates California New Markets Tax Credit under Personal Income Tax Law and Corporation Tax Law for taxable years 2021-2025, modeled on federal New Markets Tax Credit program to stimulate private investment in low-income communities.

• Limits total annual credit allocation to $50,000,000 per calendar year for qualified equity investments in low-income community businesses with 250 or fewer employees.

• Designates Governor's Office of Business and Economic Development (GO-Biz) to administer the program, including application review, allocation decisions, and monitoring of qualified community development entities.

• Establishes California New Markets Tax Credit Account within California Economic Development Fund, funded by application and administration fees collected from entities seeking credit allocations.

• Requires GO-Biz to collect data on jobs created, businesses assisted, investment amounts, and community economic impact; sections sunset December 1, 2026.