College Access Tax Credit Fund
Senate Bill 798 ("SB 798"), codified under Revenue and Taxation Code sections 17053.86 and 23686, was signed into law by the Governor on September 16, 2014 and became effective immediately as an urgency statute. Senate Bill 81 (“SB 81” or together with SB 798, the “bills”) was signed into law by the Governor on June 24, 2015, amended Revenue and Taxation Code sections 17053.86 and 23686 and added sections 12207, 17053.87, and 23687. The bills authorize a College Access Tax Credit ("tax credit") for taxable years beginning on or after January 1, 2014, and before January 1, 2018, based on a percentage of the taxpayer's contribution to the College Access Tax Credit Fund (the "Fund"). The California Educational Facilities Authority (“CEFA” or the “Authority”) is required to allocate and certify the tax credit.
The maximum aggregate amount of tax credits that can be allocated and certified by CEFA each calendar year (2014, 2015, and 2016) is $500 million in addition to the amount of any unallocated and uncertified tax credits in the previous calendar year. The maximum aggregate amount of tax credits that can be allocated and certified by CEFA in 2017 is $500 million. Applications for the tax credit will be processed on a first come, first served basis.
The tax credit is based on the following percentages:
- 60% of the amount contributed by the taxpayer to the Fund for the 2014 taxable year.
- 55% of the amount contributed by the taxpayer to the Fund for the 2015 taxable year.
- 50% of the amount contributed by the taxpayer to the Fund for the 2016 taxable year.
- 50% of the amount contributed by the taxpayer to the Fund during the 2017 taxable year.
Statutes & Regulations
For Tax Credit Seekers
- Tax Credit Application Form (on-line version)
- Tax Credit Application Form (fillable PDF)
- Privacy Notice
The link to the ACH Online Payment option will be available until January 31, 2016 and then made available again when the application period for 2016 Taxable Year begins.
- ACH Online Payment – Pay Contribution using Personal Checking/Saving Accounts or Corporate Bank Account via online payment service
Please note – Use of online payment service is only available after CEFA confirms tax credits availability and a Notice of Allocation Reservation is sent to the taxpayer within 10 days from CEFA’s receipt of the Application.
For assistance with tax questions, please contact the California Franchise Tax Board (FTB) through FTB’s website or call 800-852-5711.
For assistance with the application or payment of contributions, please contact California Educational Facilities Authority at (916) 654-5711.
Tax Credits Allocated
2015 Taxable Year
2014 Taxable Year
Tax Credits Available
2016 Taxable Year
$1,488,017,354 as of 3/2/2016
The application period for the 2016 Taxable Year is now open.
The application period for the 2016 Taxable Year is Wednesday, March 2, 2016 and ends at 5:00 p.m. (Pacific Time) on Tuesday, January 3, 2017. The amount of the tax credit, based on the percentage of the Contribution, will be 50%.