CaliforniaCalifornia bars state housing tax credits allocated for tax years starting in 2027 or later to fund required H-2A housing
Farmworker housing projects used to meet employers’ duty to house temporary H-2A workers cannot receive state housing tax credits allocated for tax years starting in 2027 or later.
What it does
Starting with credits allocated for tax years beginning in 2027, California will award no state housing tax credits to farmworker projects that employers use to meet their duty to house H-2A workers.
For credits allocated for tax years starting in 2027 or later, employers with H-2A workers and their agents cannot use state housing tax credits to fund any housing. Agreements made before 2020 remain exempt only from this employer aid ban.
For extra state housing credits that need yearly budget approval, California’s tax credit committee must consider separate scoring for farmworker housing and rural project points for nearby services. It need not adopt either change.
Argument forFor credits allocated for tax years starting in 2027 or later, the ban could leave more state housing credits for other eligible farmworker homes.
Argument againstFor credits allocated for tax years starting in 2027 or later, the ban could make housing that employers must provide to H-2A workers harder to finance.
More detail
California bars state housing tax credits for farmworker projects used to meet employers’ duty to house H-2A workers. This covers farmworker housing used to meet an employer’s duty to house temporary agricultural workers called H-2A workers. The restriction applies only to credits allocated for tax years beginning on or after January 1, 2027.
California includes state housing tax credits in its housing aid ban for employers with H-2A workers. The employer housing aid ban covers employers with at least one H-2A worker and their agents when the credits would fund planning, building, or running any housing. Federal housing tax credits remain outside this definition of state funding. The employer housing aid ban exempts state funding agreements made before January 1, 2020. That exception does not apply to the separate ban on credits for projects used to meet the H-2A housing duty. The addition applies only to credits allocated for tax years beginning on or after January 1, 2027.
California’s tax credit committee must consider changing how it scores farmworker housing projects. The review concerns farmworker projects seeking extra state housing credits that need yearly budget approval. The committee must consider both scoring changes but need not adopt them. These extra state housing credits are available only if the yearly budget approves an amount. The duty to consider these scoring changes took effect on September 30, 2026.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State - Chapter 931, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 4Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 27Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 63. Noes 7. Page 6690.).Major
- Vote recorded AB 2270 Arambula Concurrence in Senate Amendments. Result: pass.Lower
- Aug 27In Assembly. Concurrence in Senate amendments pending.
- Aug 26Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 3.).Passed Senate
- Vote recorded 3rd Reading AB2270 Arambula et al. By Arreguín. Result: pass.Upper
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 21Read third time and amended. Ordered to second reading.Major
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 6. Noes 1.) (August 13).Minor
- Jun 29In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 18Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 17From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (June 16).Major
- Jun 16
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 10Referred to Com. on HOUSING.Minor
- May 28In Senate. Read first time. To Com. on RLS. for assignment.Minor
- May 27Read third time. Passed. Ordered to the Senate. (Ayes 64. Noes 6. Page 5460.)Passed Assembly
- Vote recorded AB 2270 Arambula Assembly Third Reading. Result: pass.Lower
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 12. Noes 1.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 14Joint Rule 62(a), file notice suspended. (Page 5030.)
- May 13In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- May 4Re-referred to Com. on APPR.Minor
- Apr 30Read second time and amended.Major
- Apr 29From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 29).Major
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 14From committee: Do pass and re-refer to Com. on H. & C.D. (Ayes 5. Noes 1.) (April 13). Re-referred to Com. on H. & C.D.Minor
- Apr 13
- Vote recorded Do pass and be re-referred to the Committee on [Housing and Community Development]. Result: pass.Lower
- Mar 9Referred to Coms. on REV. & TAX. and H. & C.D.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced
HousingAgricultureTaxes & Budget