Signed by Governor Henry McMaster

Vote Smart's Synopsis:

Vote to concur with senate amendments and pass a bill that establishes a state housing credit equal to the federal low income housing credit to increase affordable housing projects.

Highlights:

• Requires a portion of any federal housing tax credit taken on a project to be recaptured and the taxpayer claiming any state tax credit with respect to such project also is required to recapture a portion of any state tax credit (Sec. 2-2a).

• Specifies the total amount of the tax credit allowed by this section for a taxable year may not exceed the taxpayer's income tax liability and any unused tax credit may be carried forward to apply to the taxpayer's next five succeeding years' tax liability (Sec. 2-3). 

• Specifies that the taxpayer may not apply for the credit against any prior tax years' tax liability (Sec. 2-3).

• Requires the tax credit allowed by this section, and any recaptured tax credit, to be allocated among some or all of the partners, members, or shareholders of the entity owning the project in any manner agreed to by such persons, regardless of whether such persons are allocated or allowed any portion of the federal housing tax credit with respect to the project (Sec. 2-4).

Full Bill Text