New York State Budget Allows Bifurcation and Certification of LIHTC, Extends State Historic Credit for 5 Years

Governor Cuomo recently approved the state budget for FY 2018-19. One provision in the budget allows for the bifurcation and certification of State Low Income Housing Credits and Federal Low Income Housing Tax Credits. This allows for the two credits to be decoupled, allowing investors to transfer state credits separate from federal LIHTCs. The entity or person receiving the state credit would also not need to have any ownership interest in the LIHTC development.

The legislation also gives authority for extending the State Historic Tax Credit for five years, through 2024, and allows the credit to be taken in the first year, unlike the federal Historic Tax Credit, which must be taken over five years in accordance with recent legislation.

An additional budget highlight includes $250 million in appropriations for the New York City Housing Authority. The New York Housing Conference has provided a budget chart breaking down the state’s housing program allocation amounts.