A message from Executive Director Mark Stivers regarding newly available forms for reporting the sale of certificated state credits and the resale of certificated state credits:
The California Legislature recently allowed for the “certification” of state low-income housing tax credits reserved in 2017-2019. Certificated credits are sold outright to investors who take no ownership interest in the development. This eliminates the impact of the state tax credits on an investor’s federal tax liability, allowing the investor to offer higher pricing. TCAC has made its first reservations of certificated credits is excited about this new opportunity to make additional equity available to California tax credit projects.
TCAC reserves certificated credits in the name of the non-profit partner of the partnership. The non-profit partner sells the credits to one or more investors, and the law allows each initial investor to resell the credits he or she purchased one additional time. The law further requires the buyers and sellers of certificated credits to report specified information to TCAC within 10 days of the sale of the credit on TCAC-prescribed forms. TCAC will forward this information to the Franchise Tax Board on a regular basis.
TCAC is now making available the forms to report on the sale of certificated state credits. The NOTICE OF SALE OF CERTIFICATED STATE CREDITS applies to the sale from the non-profit applicant to the initial investor. The NOTICE OF RESALE OF CERTIFICATED STATE CREDITS applies to any resale of the certificated credits between an initial and subsequent investor.
Please use these forms when reporting sales to TCAC. If you have questions on completing the forms, please contact Gina Ferguson at gferguson@treasurer.ca.gov. Please send completed forms to Marlene McDonough at mmcdonough@treasurer.ca.gov.
Thank you for your assistance. We look forward to many applications seeking to certificate state credits.
Mark Stivers
Executive Director
