SB 1230 Summary

• Establishes the Community Development Financial Institutions Grant Program administered by GO-Biz to provide grants to qualified community development financial institutions, with grant recipients required to provide matching funds on a dollar-for-dollar basis from private sources.

• Creates tax credits for personal income tax, corporation tax, and insurance tax for taxable years beginning January 1, 2021, equal to an applicable credit percentage of qualified investments in certified community development financial institutions, with the percentage set at 0% unless specified otherwise in the Budget Act.

• Limits aggregate qualified investments across all three tax types to $50 million per calendar year, with 10% reserved for investments of $200,000 or less and a 30% cap per institution, allowing unused amounts to carry over to subsequent years.

• Requires qualified investments to be at least $50,000 held for a minimum 60-month period, with full recapture of credits if investments are withdrawn early without reinvestment and 20% partial recapture if investments are reduced.

• Mandates that community development financial institutions submit annual reports on investment use and requires the Legislative Analyst to report to the Legislature by June 30, 2025, analyzing the fiscal impact and benefits of the tax credits.