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2022 SESSION

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SB 47 Income tax, state; housing opportunity tax credits.

Introduced by: Mamie E. Locke (by request) | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED SENATE:

Income tax; housing opportunity tax credits. Removes the $15 million credit cap imposed on the Virginia housing opportunity tax credit and allows taxpayers to receive a state-level credit in an amount substantially similar to the amount of federal credit allocated or allowed by the Virginia Housing Development Authority for 10 years. Under current law, the Virginia Housing Development Authority is required to allocate the credit for one year only.

SUMMARY AS INTRODUCED:

Income tax; housing opportunity tax credits. Increases the aggregate annual limit on housing opportunity tax credits from $15 million to the sum of (i) $150 million, (ii) the amount by which the allocation for the previous year exceeds credits actually reserved in that year, and (iii) the amount of credits recaptured or disallowed for the previous year. The bill removes the credit's sunset, which under current law is January 1, 2026; however, the Virginia Housing Development Authority (the Authority), which administers the credit, would be authorized to reserve credits only for fiscal years beginning in January 1, 2021, but before January 1, 2026.

The bill directs the Authority, which is the agency charged with administering the federal low-income housing tax credit (the federal credit), to reserve a housing opportunity tax credit (the state credit) for a taxpayer whenever it allocates a federal credit. The reserved state credit must be at least one-half of all federal credits allocated to the taxpayer over the 10-year period for the federal credit. However, the bill limits the amount of credits a taxpayer may claim in a single taxable year to the lesser of (a) the amount of the federal credit allocated to the taxpayer or (b) one-tenth of the reserved amount.

The bill removes the Authority's power to allow credit applicants to sell credits to other taxpayers.