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California Legislation Would Create State New Markets Tax Credit Incentive
Legislation in California would create a state-level new markets tax credit (NMTC) incentive. A.B. 1572, introduced in March, would create a state credit with an annual $100 million cap, for taxable years beginning on or after Jan. 1, 2023, and before Jan. 1, 2028. The credit would be worth 9% of the investment for the first year and 5% for the following six years. The legislation was referred to the Assembly committee on revenue and taxation.
The Novogradac Introduction to New Markets Tax Credits booklet provides an overview of the NMTC incentive, including the goals and structure of the NMTC.