Low-income housing tax credit: farmworker housing

Beginning in 2027, state tax-credit support cannot subsidize an employer’s federal obligation to house H-2A workers. The law also directs consideration of scoring changes tailored to farmworker-housing projects.

What the law does ​

• Includes state low-income housing tax credits in the definition of state funding beginning with taxable years on or after January 1, 2027.
• Prohibits state low-income housing tax credits for farmworker-housing projects used to meet an employer’s federal H-2A worker housing requirement.
• Requires recipients that improperly use state funding for housing an H-2A employer is required to provide to reimburse the state.
• Requires the California Tax Credit Allocation Committee to consider creating a farmworker-housing project type in its scoring rules and using rural-project amenity points for eligible farmworker housing.

Who it affects ​

• Agricultural employers and their agents that employ H-2A workers.
• Developers and sponsors seeking state low-income housing tax credits for farmworker housing.
• Farmworkers seeking housing through tax-credit-financed projects.

Context ​

Federal law requires H-2A agricultural employers to furnish worker housing.