California

California Low Income Housing Tax Credit Summary

• Applicable against corporate franchise, individual income, and insurance company tax (other than tax on ocean marine insurers).
• Credit claimed over 4-year period (10-year for Federal).
• 30-year compliance period (instead of 15).  Taxpayers have to comply with 30-year regulatory agreement.
• Carryover of excess credits and may be used beyond the credit’s repeal date until exhausted.
• Corporations eligible for credits may transfer credits to other affiliated corporations.
• Credit can be sold under certain conditions.

California Film Tax Credit Summary

• Income tax offset.
• Sunset date: June 30, 2025
• Credit must be utilized during year of transfer or within the 5-Year carryforward period of the transferor.
• No recapture for the transferee.
• Transferable tax credit (one-time)
• $5,000,000 usage limitation for transferees for tax years 2020, 2021, and 2022.