State Tax Credits

The Missouri Housing Development Commission (MHDC) approved a state QAP and issued notices of funding availability for the LIHTC program for the first time since 2017, when then-Governor Eric Greitens and the MHDC voted to stop matching federal LIHTC awards with state funds. The state nine percent LIHTC is funded for 70 percent of the […]

The Vermont Housing Finance Agency (VHFA) Board of Commissioners recently awarded state housing tax credits for five affordable homeownership development projects. Homes receiving tax credits will retain their affordability for future buyers should the owners sell the home in the future.

South Carolina enacted the Workforce and Senior Affordable Housing Act when House Bill 3998 was signed into law by Governor Henry McMaster (R) on May 14, 2020. The legislation allows for the allocation of state credits matching the federal credit allocation on both nine and four percent deals for deals placed in service between January […]

Maine Governor Janet Mills (D) signed H.P. 1180 to create a State LIHTC that is equal to the Federal LIHTC, beginning January 1, 2021. The Maine LIHTC will have a $10 million annual statewide cap, but unallocated funds can be carried forward to create a maximum $15 million per year.

On November 20, 2019 Legislation introduced in the South Carolina Legislature  that would create a state low-income housing tax credit (LIHTC) for properties in opportunity zones. Analysis of the legislation by Novogradac & Company finds that the measure “would create a 25 percent tax credit for investment in the state’s OZs and add OZs to other state incentive programs.

The California Tax Credit Allocation Committee (TCAC) posted the 2020 Excel application and Frequently Asked Questions (FAQ) for its $500 million state tax credit. Applications are due on November 15 and must be submitted to both TCAC and the California Debt Limit Allocation Committee (CDLAC). The minimum CDLAC point score is 80 points, and the maximum point score is 160 points for 100 percent affordable restricted projects and 140 points for mixed income projects.

Nevada Governor Steve Sisolak (D) signed S.B. 448 that creates a state LIHTC with an annual statewide cap of $10 million that can be carried forward if unused. The state LIHTC has a sunset date of Jan. 1, 2030. Nevada is now the 18th state with a state LIHTC incentive.

On May 17, Colorado Governor Jared Polis (D) signed HB19-1228 into law. The bill increases the amount of state Affordable Housing Tax Credits available for annual allocation by the Colorado Housing and Finance Authority from $5 million to $10 million for 2020-2024.

The Colorado Senate Finance Committee passed HB19-1228, Increase Tax Credit Allocation Affordable Housing, on a unanimous 7-0 vote.

The Colorado state legislature is considering HB19-1228, which would increase the amount of state Affordable Housing Tax Credits from $5 million to $10 million, at the March 21 meeting of the House Finance Committee. The bill  is sponsored by State Representative Shannon Bird, Representative Brianna Titone, Senator Jack Tate and Senator Rachel Zenzinger.

Originally renewed in the 2014 legislative session, the state Tax Credit Program has proven to be a critical resource; leveraging over $465 million in private sector investment into Colorado, which in turn has helped support over 4,000 affordable apartments be developed or preserved.

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.