California Tax Credit Allocation Committee

Farmworker Housing Assistance Tax Credit Program

California Senate Bill 1247, chaptered into state law September 28, 2008 and effective January 1, 2009, eliminated a separate state farmworker housing tax credit program, and instead established an annual set-aside of state low-income housing tax credits for farmworker housing developments (Farmworker State Credits). The annual allocation is $500,000. This accrues and is carried forward into future years if not allocated. The amount of credit available for 2015 is $5,529,815.

Farmworker housing tax credit applicants apply in California Tax Credit Allocation Committee’s (TCAC’s) competitive rounds using TCAC application documents. Farmworker state tax credits can be requested in combination with nine percent (9%) or four percent (4%) federal tax credits, or can be requested without federal tax credits. Farmworker state credit applicants requesting 9% federal credit compete within the TCAC competitive system as part of the applicant pool. If successful, an applicant is awarded 9% federal and farmworker state credit. Farmworker state credit applicants requesting 4% federal credits apply within the competitive rounds and compete for Farmworker State Credit using the TCAC scoring system available to 4% plus state credit applicants. If multiple applications for Farmworker State Credits are received requesting 9%, or 4% federal credit (or farmworker state credit only), TCAC Regulation Section 10317(h) provides for a ranking among these applicants.

Projects awarded farmworker state credit must comply with all TCAC regulatory requirements. Beyond the ability to receive state credit without federal tax credit, farmworker state credit program requirements are identical to all other low income housing tax credit program requirements. Farmworker state credit allocation information is located in TCAC Regulation Section 10317.

For questions about farmworker state credit, please contact your regional analyst.