AB346 Requirement (Taxpayer Certification)
AB 346 Taxpayer Certification Requirement
In 2023, the Governor signed into law Assembly Bill 346 (AB 346) allowing taxpayers to claim the credit commencing in the year the building is placed in service and the federal credit period commences in advance of CTCAC issuing its certification (3521A form), provided that the housing sponsor has filed a taxpayer certification with the California Tax Credit Allocation Committee (CTCAC) and delivered a copy to the taxpayer pursuant to Sections 12206(b)(2)(C), 17058(b)(2)(C) and 23610.5(b)(2)(C) of the Revenue and Taxation Code. In the event CTCAC issues a certification that is inconsistent with the taxpayer certification, the taxpayer shall amend any previously filed tax returns as needed to reflect the credit amount certified by CTCAC. The changes made pursuant to AB 346 applies to taxable years beginning on or after January 1, 2023.
For projects where the taxpayers are claiming their credits per AB 346 in advance of CTCAC issuing its 3521A form, the housing sponsor shall submit the taxpayer certification to Andrew Yu at Andrew.Yu@treasurer.ca.gov :
- Taxpayer certification; certified statement from the certified public accountant (CPA) of the housing sponsor. The taxpayer certification shall contain the following:
- Project Name
- CTCAC Project Number (CA-XX-XXX)
- Total amount of the credit the project is eligible for.
- For each building, the taxable year the building is placed in service.
- For each building, the taxable year in which the federal credit period for the building has commenced.
- Contact information and mailing address for the person/entity that will be receiving the issued 3521A tax forms.
- Signed by the independent CPA, identified by name (and accounting firm if applicable)