Details of Public Law 119-21, section 70423 , One Big Beautiful Bill Act

This provision makes permanent the $5,000,000,000 new markets tax credit limitation for each calendar year after 2019, which was to sunset after 2025.

This provision limits the carryover period for any unused portion of new markets tax credit to 5 years from the year in which the excess credit occurred. In addition, any unused carryover credit generated prior to 2026 shall be treated as if it occurred in 2025.

California does not conform to the federal new markets tax credit under IRC section 45D and has no comparable credit. As a result, California does not conform to the changes made by this provision.