Update: California’s College Access Tax Credit Gets Expanded and an Extension

On June 24, 2015, California Governor Jerry Brown signed SB 81, which made changes to the College Access Tax Credit (CATC) that favor taxpayers. Here are the details:

  • The credit was extended one additional year. The credit now will cover the 2017 tax year, and the amount of the credit will be 50 percent of the amount contributed and certified by the California Educational Facilities Authority. The credit was originally scheduled to expire in 2016.
  • The credit can now reduce regular tax below tentative minimum tax (TMT) for credit years 2014 through 2017. This change is retroactive back to the 2014 tax year; we can file amended returns for taxpayers with credits limited by TMT.

2015 Application Period Is Open

The California Treasurer’s Office is now accepting applications from both businesses and individuals for the CATC. Total allotted credits are capped at $500 million per calendar year. Applications will be processed and credits awarded on a first-come, first-served basis.

Read our Alert from earlier this year to find out how to apply for this credit and for more background on the CATC.

Contact Us

Taxpayers hoping to claim a portion of the $500 million available in CATC credits for the 2015 tax year should apply now. We can help model and calculate the benefits for you and guide you through the process. For more information about the CATC or to learn more about other incentives that may be available to you at the state or federal levels, contact your Moss Adams professional or email statetax@mossadams.com.