Legislation Introduced to Create California New Markets Tax Credit

Tuesday, March 3, 2020 - 3:15pm

A bill introduced in the California Assembly would create a state new markets tax credit (NMTC). A.B. 3101 would create a California NMTC for taxable years beginning on or after Jan. 1, 2021, and before Jan. 1, 2026, with a statewide annual cap of $100 million. The bill would authorize allocation for the credit only when the state Legislature appropriates funds for it. The California NMTC would allow taxpayers 6 percent of the state NMTC for Years 1, 2, 4, 5, 6 and 7 and 3 percent for Year 3.