At its meeting on October 21, 2015, the California Tax Credit Allocation Committee (TCAC) adopted the final proposed regulations published on October 9, 2015. Changes to California’s tax-credit program worth immediate note include, the adoption of procedures clarify and codify TCAC’s prior policies related to the transfer of tax credit projects, and implementation of requirements to provide for the short-term and long-term capital needs of tax-credit projects through the establishment of replacement reserve accounts upon the occurrence of a transfer event. Additionally, there are a number of other substantive and procedural changes to the program. Tax-credit program participants are strongly encouraged to review the new regulations to see the full scope of programmatic changes.
The new regulations can be found at New TCAC Regulations.