The California State Legislature passed a bill August 27 that would establish a state historic rehabilitation tax credit (HTC).  A.B. 1999 was introduced by Speaker of the Assembly Toni Atkins (D-San Diego) and passed the State Assembly 75-0 in June. Since then it has passed the Senate Governance and Finance Committee and the Senate Appropriations Committee. The bill has been sent to Governor Jerry Brown for his approval and he will have until September 30 to approve the legislation. If approved, A.B. 1999 would provide a 20 percent tax credit for qualified rehabilitation expenditures to historic structures or a 25 percent credit if the historic project is located on federal or state surplus property including affordable housing, designated census tracts, military base reuse authority, or transit-oriented developments. The bill would authorize $50 million annually from calendar year 2015 through 2022, including a $10 million set-aside for projects with less than $1 million in qualified rehabilitation expenditures.